BlackRock has received written notice from British bank Barclays PLC that its board of directors has accepted the New York-listed fund house's offer to acquire its Barclays Global Investors (BGI) unit. Barclays will recommend the transaction to Barclays' shareholders for approval at a special meeting to be held in early August 2009.
Barclays' acceptance of BlackRock's offer came after private-equity firm CVC Capital Partners Group didn't match BlackRock's offer for BGI's exchange-traded funds business, iShares. Barclays previously entered into an agreement to sell BGI's iShares business to CVC, but the deal included a "go-shop" arrangement that enabled Barclays to solicit other offers. Since Barclays didn't receive a matching offer from CVC within five business days of BlackRock's offer, the deal with BlackRock pushed through.
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