Private equity firms Hellman & Friedman, Bain Capital and TPG are all interested in acquiring British bank Barclays’ iShares unit, according to Reuters.
Last week, Barclays confirmed that it has held discussions with a number of potential interested parties regarding the disposal of iShares, the bank’s exchange-traded funds provider. No parties were named.
The value of iShares is reported to be $4.37 billion, more than 33% of Barclays’ market capitalisation.
Capital raised from the sale may prevent the bank from joining a UK government scheme to insure banks against losses on their riskiest assets.
Alternatively, the capital could be used by the bank to pay the fees required to join the Asset Protection Scheme.
Barclays is in dialogue with HM Treasury and FSA regarding its potential participation and a decision will be based on the economic merits to shareholders of any such participation, the bank said.
Other British banks such as Royal Bank of Scotland and Lloyds Banking Group have given up stakes to the government.
The private equity arm of Barclays last week announced the acquisition of a majority stake in Compin Group, a European provider of railway fittings and front-ends, for an undisclosed sum.
D.C.