Barclays mulls sale of iShares unit, considers toxic asset scheme

LONDON: Barclays bank said Monday it was in talks over the sale of its asset management business iShares and was negotiating with the British government on a plan to provide guarantees for risky assets.

Barclays said it had approached "a number of potentially interested parties" about selling iShares but added that "no decision regarding the disposal of any business has been taken."

Reports said the sale could raise four billion pounds (4.4 billion euros, 5.6 billion dollars).

On the toxic assets, a statement said: "Barclays also confirms that it is in dialogue with HM Treasury and FSA (Financial Services Authority) regarding its potential participation in the Government's Asset Protection Scheme.

"Barclays' decision whether and to what extent to participate in the scheme will be based on the economic merits to shareholders of any such participation."

Barclays has fared better in the financial crisis than many of its British banking rivals and has not accepted bailout funds from the British state.

Instead it sought funds from investors in Abu Dhabi and Qatar to bolster its finances.