Barclays wins investors round over sale of BGI to BlackRock
BARCLAYS chairman Marcus Agius yesterday defended the sale of Barclays Global Investors, as some shareholders accused the bank of “selling the family silver”.
Agius said the sale, worth $14.2bn (£8.5bn), would “allow shareholders to participate in and enjoy a relationship with the global leader in the industry”.
One shareholder asked why the bank was selling a unit that had consistently delivered solid profits.
Agius, backed up by board members including finance director Chris Lucas, replied that “the prospects of BGI as owned by Barclays are lower than if it is owned by BlackRock”.
The deal will see BlackRock pay $6.6bn in cash plus 38m shares to Barclays, which will take a 19.9 per cent interest in the new company, BlackRock Global Investors.
Chief executive John Varley and Barclays Capital boss Bob Diamond will both take seats on the board, while Diamond stands to net a £20m windfall on his shares in BGI.
More than 99 per cent of shareholders approved the deal, despite some dissent.
The bank also said it was planning “enhancements” to its pension plan.