BlackRock on verge of BGI deal

MONEY manager BlackRock&rsquo;s $13bn (&pound;7.8bn) bid to take over Barclays Global Investors (BGI) could be wrapped up as early as today, with advisers working around the clock to put the final seal on the tie-up.<br /><br />The US firm will swallow BGI in a cash-plus-shares deal, giving Barclays a 20 per cent stake in what will be the world&rsquo;s largest asset manager, with about $3 trillion under management.<br /><br />Middle Eastern funds, including the Kuwait Investment Authority and the Qatar Investment Authority will provide BlackRock with around $3bn in financing in return for a combined equity stake of up to 15 per cent.<br /><br />The deal will also hand Barclays two seats on the board of the new entity, one of which will be occupied by the bank&rsquo;s president Bob Diamond, who stands to pick up $20m from the deal due to his shareholding in BGI.<br /><br />And yesterday it emerged that Credit Suisse, which advises Barclays and Lazard, which is being consulted by BlackRock, are in line for fees worth $41m, according to an estimate from New York-based consultancy Freeman &amp; Co.<br /><br />Amanda Staveley, the Middle Eastern power broker, is expected to earn more than &pound;40m for herself and PCP Partners, the private equity and advisory firm she heads, by advising the Gulf-based investors.