Barclays still in talks to sell investment arm

Courtesy: Associated Press,

LONDON -- Barclays PLC said Monday it is still in talks with U.S. investment group BlackRock Inc., among other bidders, over the potential sale of its investment arm Barclays

Global Investors.

The bank said there was no certainty that it would find a different buyer for San Francisco-based iShares, which generates half the profits within BGI and which Barclays had agreed to sell to CVC Capital Partners for $4.4 billion. Barclays has until June 19 to make a better deal under a "go shop" clause in the sale agreement.

"The discussions are not yet concluded and there are a number of significant open issues which could affect the nature and terms of any transaction," Barclays said in an announcement to the London Stock Exchange.

"There is no certainty that these discussions will result in Barclays concluding a different transaction than that announced on 9 April with CVC regarding iShares."

In a separate announcement, BlackRock also said there was no certainty of reaching a deal.

Barclays would have to pay CVC Capital Partners $175 million to break their sale agreement on iShares.