BlackRock nears BGI takeover

BLACKROCK looks set to seal the deal to buy Barclays Global Investors (BGI) as early as today, sources say.<br /><br />The deal would merge the two giant firms to create the world&rsquo;s biggest money manager.<br /><br />The US bank is expected to pay Barclays up to $13bn (&pound;8.1bn) in a mixture of cash and shares. It is also expected to give Barclays a 20 per cent stake in the combined group.<br /><br />A group of investors from the Middle East is likely to be included in the acquisition, with the Qatar Investment Authority among those set to pay $3bn (&pound;1.9bn) in exchange for a 12 per cent stake. <br /><br />Barclays shares rose 2.2 per cent yesterday, closing at 290p.<br /><br />The deal would put an end to Barclays&rsquo; discussions with Bank of New York Mellon and also scupper the proposed sale of iShares, a part of BGI, to buy-out house CVC for $4.4bn.<br /><br />BlackRock, led by chief executive Larry Fink is the world&rsquo;s second largest asset manager, with funds worth $1.28 trillion, while BGI sits in seventh place with just over $1 trillion. <br /><br />A Barclays statement said it was still in talks with a number of parties about both iShares and BGI.