Several news sources are reporting that Barclays Plc is in talks to sell its iShares exchange-traded funds unit. The U.K.’s third- biggest bank is trying to bolster capital without turning over a stake to the government, according to Bloomberg.
The iShares unit may be valued at about 2 billion pounds ($2.84 billion) based on its earnings and similar recent deals, analysts estimate.
In January, Barclays said it wouldn’t need government funding because of record revenue from Barclays Global Investors and the acquisition of Lehman Brothers Holdings Inc.’s North American unit. On Feb. 9, the bank said second-half profit rose 49 percent to 2.66 billion pounds.
Barclays Tier I capital ratio was 6.7 percent at the end 2008, less than its major rivals in Britain.