Barclays accepts BlackRock offer for BGI

LONDON: British bank Barclays said Tuesday that it has accepted US investment manager BlackRock's $13.5 billion offer for its asset management arm, Barclays Global Investors.

BlackRock Inc. said last week it would purchase BGI from Barclays PLC using a combination of cash and stock, a deal which makes it the world's largest asset manager.

Barclays originally had planned to sell a unit of BGI, San Francisco-based iShares, to CVC Capital Partners for $4.4 billion. But under a ``go shop'' clause in the agreement, Barclays had the option of hunting for a better offer.

Barclays said it would pay CVC a break up fee of $175 million for the scuppered deal.