Barclays reported to be in talks on fund sale

LONDON (Reuters) - Barclays <BARC.L> is in talks to sell its asset management arm, Barclays Global Investors (BGI), for about $10 billion (6.56 billion pounds) to potential bidders including U.S. money manager BlackRock <BLK.N>, the Financial Times reported in its Friday edition.

Citing people familiar with the matter, the paper said buying BGI would give BlackRock a big boost in exchange-traded funds, which are a specialty of BGI's iShares unit.

Barclays has already agreed the sale of iShares for 3 billion pounds to CVC Capital Partners but has subsequently received new interest from both trade and private equity buyers for the unit.

The FT said private equity firms BC Partners and Hellman & Friedman were also considering a counter bid for iShares.

No-one at Barclays could immediately be reached for comment.

(Reporting by David Holmes; Editing by Steve Orlofsky)

Article Published: 14/05/2009