Administration June 16, 2009

BlackRock-Barclays Deal for BGI Formally Accepted

June 16, 2009 (PLANSPONSOR.com) - BlackRock, Inc. announced Tuesday it has received written notice from Barclays PLC that Barclays' Board of Directors has formally accepted BlackRock's offer to acquire Barclays Global Investors (BGI).

Reported by

Fred Schneyer

A BlackRock news release said Barclays also indicated its Board will recommend the transaction to Barclays’ shareholders for approval at a special early August 2009 meeting.

According to the announcement, Barclays’ acceptance of BlackRock’s offer followed satisfaction of the provisions required under a “go-shop” arrangement with respect to a previous offer for iShares, BGI’s ETF platform. The other party hadfive business days to match the terms of BlackRock’s proposal or the Board of Directors of Barclays agreed to execute the purchase with BlackRock and recommend it to Barclays’ shareholders for approval.

The transaction is expected to close in the fourth quarter 2009 following Barclays’ shareholders consideration, the receipt of client consents, regulatory approvals, and satisfaction of customary closing conditions.

The two sides announced last week that BlackRock had executed an agreement to acquire BGI and iShares (see BREAKING NEWS: BlackRock Snags BGI, iShares ).

According to a press release then, the combination of BlackRock and BGI brings together “market leaders in active and index strategies to create the preeminent asset management firm, BlackRock Global Investors.” The transaction would create an independent and asset management firm with combined assets under management of over $2.7 trillion, the announcement said.