This could be a transformational deal, Burton Greenwald, president of B.J. Greenwald Associates, told Bloomberg. We could see BlackRock open a number of ETFs in the fixed income space that [PIMCO] specializes in.
A deal could be announced as early as this week, although Barclays is reportedly entertaining offers from other bidders.
The discussions are not yet concluded, and there are a number of significant open issues which could affect the nature and terms of any transaction, Barclays said in a statement.
Barclays sold its iShares exchange-traded fund business to CVC Capital Partners for $4.4 billion in April. The firm lost $18.6 billion in credit losses and writedowns and subsequently is looking to raise cash in order to obtain adequate capital. The companys profit fell 65% in the first quarter to $84 million.