Barclays to pay CVC £106m in fees

17th Jun 2009 06:57

Barclays will recommend the £8.1bn ($13.5bn) purchase of its fund management arm, Barclays Global Investors (BGI), to US asset manager BlackRock at a general meeting in August.In a statement released late Tuesday, the UK bank also said private equity firm CVC Capital Partners, which bid $4.4bn for Barclays' iShares business, part of BGI, in April, has agreed to terminate the deal without exercising its right to put forward an alternative proposal to the BlackRock offer.Barclays will pay CVC fees of $175m (£106m) under the agreement signed with it on 9 April.Under the terms of an agreement with CVC, Barclays had until 18 June to find a better price for the sale iShares. Barclays will retain around a 20% equity stake in the enlarged BlackRock business, which will be renamed BlackRock Global Investors. The two parties have committed to deepening their ties in investment banking and wealth management, with John Varley, Barclays Group chief executive, and Robert Diamond, Barclays Group president and chief executive of Investment Banking and Investment Management, to be nominated to the board of directors of BlackRock.