Barclays to Sell BlackRock Stake Below Market Price

Tuesday, 22 May 2012 08:39 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
British bank Barclays will sell its nearly 20 percent stake in BlackRock at a discount, sending the U.S asset manager's shares down 2 percent after the bell.

Barclays will sell 26.2 million BlackRock shares at $160.00 per share, a 2 percent discount from its Tuesday closing price of $163.37 on the New York Stock Exchange.

BlackRock will buy back 6.4 million shares for $1 billion, the company said in a statement.

If underwriters exercise the option to buy an additional 2.6 million in BlackRock shares, Barclays will have completely sold off an interest it has held for nearly three years.

Barclays' 19.6 percent stake came as part of BlackRock's $15 billion purchase of Barclays Global Investors in 2009, which was seen as a good deal for the bank at the time.

However, Basel III regulations mean banks now have to hold more capital against minority stakes in asset managers and other firms, making it less profitable.

BlackRock shares were down 2 percent after the bell at $159.80.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved