Barclays shareholders approve BGI sale

7 August 2009

Shareholders at Barclays have backed the sale of investment management unit Barclays Global Investors to fund manager BlackRock.

The move was approved at the bank's annual general meeting (AGM) in London today (August 6th).

Since voting began this morning 99 per cent of investors voted in favor of the transaction after they were recommended to approve the deal by the bank. A final count is expected to be announced later today.

The sale price of the unit will be $14.2 billion, with chairman Marcus Aguis noting that the value has increased from the initial figure of $13.5 billon after shares in BlackRock rose.

According to Bloomberg, he told investors at the AGM that the BlackRock offer is "compelling" adding that the move "allows Barclays to retain an ongoing interest in the potential upside from the larger combined business while unlocking significant capital in the short term".

The deal was first agreed in June and will involved Barclays retaining a 19.9 per cent stake in BGI.

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