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Barclays reportedly considers index arm sale
Wednesday 20 November 2013

20 November 2013 - UK financial group Barclays Plc (LON:BARC) is mulling over a potential sale of its index unit, after equity index provider MSCI Inc (NYSE:MSCI) recently expressed interest in the business, Reuters reported citing several knowledgeable sources.

Barclays has not taken a decision yet, the people said. It was not clear how much a potential deal could bring to the vendor. According to industry experts, Barclays was likely to receive a good premium, benefiting from the increased investment interest in fixed-income, passively managed exchange-traded funds (ETFs) and mutual funds.

The agency could get no comment from Barclays and MSCI.

An executive at a large provider of index funds and ETFs, who wished to remain anonymous, commented that MSCI would be a natural buyer for Barclays' index business as it needs more fixed income.

The target includes products like the Barclays US Aggregate Bond Index, which measures the performance of assets with a market value of USD16.7trn (EUR12.3trn), Reuters said.
Date Published: 20/11/2013
Target: Barclays Plc´s index unit
Country: UK
Sector: Banking/Financial services
Type: Divestment
Status: Speculation, Auction
Vendor: Barclays Plc
Buyer: MSCI Inc, Unnamed buyers