Is Barclays bank on the verge of another disposal?
In a move which has surprised many people in the City, it has been revealed that Barclays bank could be on the verge of selling its asset management arm, Barclays Global Investors (BGI), in order to raise more money. It is understood that the recent sale of iShares to CVC capital partners may also offer the company the chance to bid for the whole BGI subsidiary. The BGI operation is valued at around £8 billion in the company's accounts although whether it would be able to secure this kind of figure in the current market remains to be seen.
Despite the good news regarding the sale of iShares there is still a growing fear among some investors that the company needs substantially more finance for the future. While the figure of £8 billion would at least allay any short-term fears, some are suggesting the company needs in excess of £10 billion to be fully financed for the future. Those who believe the Barclays bank is "out of the woods" may like to think again although there is no doubt that the situation has improved dramatically over the last few weeks.
The banking sector is still very much under a cloud and the UK government may need to step in again at some point.
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