Barclays sells iShares unit for £3bn
Barclays has sold its iShares unit to CVC Capital Partners for £3 billion.
The bank is part-financing the deal with a £2.1 billion loan and will keep a 20 per cent stake in the business.
Barclays plans to use the sale to bolster its capital strength, after rejecting government help through its toxic assets insurance scheme in a bid to stay independent.
The deal will lift the equity tier 1 ratio to 7.2 per cent, the bank said.
John Varley, group chief executive of Barclays, said: "iShares has experienced rapid growth over the past several years and has reached a point where it can develop further on a standalone basis.
"Barclays shareholders will benefit from a reinforcement of our capital base and an ongoing commercial relationship with iShares."
Investors reacted well to the news and shares in Barclays were up 10.27 per cent by 14:27 BST.
Several employees who had shares in BGI Holdings, the holdings company for iShares, will benefit from the sale, Barclays said - including the bank's president, Robert Diamond, who could receive up to £2 million.
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