Friday newspaper round-up: BlackRock buys Barclays Global

12th Jun 2009 06:19

BlackRock, the giant US money manager, is to buy Barclays Global Investors for $13.5bn (£8.2bn) in a deal that will make it the world's biggest asset manager, the Times reports.The sale, which also includes the iShares business, will more than double BlackRock's assets to roughly $2.7trn and give the company access to fast-growing Exchange Traded Funds and retail investors. BlackRock will pay $6.6bn (£4bn) in cash and the rest in stock to acquire the unit. Alistair Darling warned Britain's economic recovery could be held back by rising oil prices and a failure by other European countries to clean up their banks. Describing himself as "confident but also cautious" over the prospects for the economy, the chancellor of the exchequer has been buoyed by recent economic forecasts suggesting the UK is moving out of recession. But he will warn at a G8 meeting in Italy this weekend there are still clouds on the horizon, the FT writes.Britain's prospects for economic recovery are being hampered by politicians who have become obsessed by their own problems, according to Richard Lambert, the director general of the CBI. The boss of the so-called "Voice of Business" speaking on Thursday at an annual CBI dinner, warned that policy-makers are worrying more about their own expenses scandal than "rising government debt to energy security, and fast-rising youth unemployment," the Telegraph reports.The pound surged yesterday to its highest overall levels this year as hopes that the British economy is emerging from recession continued to burgeon. The leading economic index produced by the Conference Board, a private research group, rose sharply in April, by 0.9 per cent, providing more evidence that the economy is on course for a recovery, the Times writes.Setanta Sports is in last-ditch talks with an unidentified white knight rescuer, in an attempt to stave off a collapse of the broadcaster. The company has received what it described as "major interest" from an unnamed "very credible organisation". It is understood that this is neither ESPN, the US sports broadcaster, nor al-Jazeera, the Times reports. West Bromwich Building Society on Thursday night agreed a deal with debt holders to calm fears that it would need financial rescue and allow it to retain its independence. The mutual completed negotiations with debt investors to convert £182.5m of subordinated debt into capital to bolster its capital ratios, the FT writes. The future of Vauxhall's 5,000 staff has been thrown into fresh doubt after Magna International, the preferred bidder for General Motors Europe, said it has yet to decide on the future of the UK car maker and Lord Mandelson indicated that talks are continuing with alternative investors, the Telegraph reports.Damon Buffini intends to step down as chairman of Permira, one of Europe's biggest and best known private equity groups, to work on its troubled portfolio of companies and to search for fresh deals. The decision, announced at Permira's annual investor meeting yesterday, ended speculation that Mr Buffini intended to retire, the FT reports. Amec, the oil services and engineering consultancy, has made a provisional offer of £52m ($86m) for Australia's GRD to strengthen its presence in the southern hemisphere and the UK's waste management market. The Sydney-listed company confirmed it received a cash offer of A$0.55 from Amec, valuing the engineering group at about A$106m. Its shares closed up 22% at A$0.50 following the announcement, the FT reports.Rival broadband companies have distanced themselves from BT's campaign to charge the BBC and YouTube to send video over its network, while industry insiders believe the move will fail. "They know full well it's not going to change anything, but maybe they hope to add it to the agenda for Digital Britain," one source close to the situation said, the Independent writes.