(Bloomberg) -- Barclays Plc, the U.K.’s third- biggest bank, is in talks to sell its Barclays Global Investors asset management unit to potential buyers including BlackRock Inc. and Bank of New York Mellon Corp., according to people with knowledge of the matter.
A sale of Barclays Global Investors, with 1.04 trillion pounds ($1.6 trillion) of funds under management, would derail an agreement announced last month to sell BGI’s iShares unit to CVC Capital Partners Ltd. for $4.4 billion, said the people, who declined to be identified because the talks are private.
Barclays has until June 18 to look for better offers for the iShares exchange-traded fund business and related units under the terms of the agreement with CVC, a London-based buyout firm. BlackRock Chief Executive Officer Laurence Fink said on an April 21 conference call that he’d be interested in expanding the firm’s position in retail mutual funds through acquisitions.
“Barclays deliberately structured the deal with a go-shop clause” to attract additional bidders, Simon Maughan, an analyst at MF Global Securities Ltd. in London, who has a “neutral” rating on Barclays stock, said on May 11.
Officials at San Francisco-based BGI, New York-based BlackRock and BNY Mellon declined to comment. The Financial Times, which reported the talks earlier, said BGI may sell for about $10 billion.
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Thursday, May 14, 2009
Asian Stocks Advance on Sony Forecast, Bank Borrowing Costs
(Bloomberg) -- Asian stocks climbed, paring the MSCI Asia Pacific Index’s first weekly decline in three weeks, after Sony Corp. forecast a smaller loss than analysts expected and bank borrowing costs plunged.
Sony, the world’s No. 2 maker of consumer electronics, jumped 5.8 percent after the company said it will close factories as part of restructuring efforts. HSBC Holdings Plc, Europe’s largest lender by market value, rose 2.8 percent as the London interbank offer rate slumped. Tokio Marine Holdings Inc., Japan’s biggest property insurer, gained 4.8 percent after a person familiar with the matter said six U.S. insurers will receive government bailout funds.
“Optimism lifts the market, and the gain in equities further lifts optimism,” said Kiyoshi Ishigane, a senior strategist a Mitsubishi UFJ Asset Management Co., which oversees the equivalent of $61 billion in Tokyo. “Like a drunkard waking up with a hangover, investors will eventually be hit with the reality that things haven’t improved overnight.”
The MSCI Asia Pacific Index rose 1.8 percent to 96.97 as of 12:38 p.m. in Tokyo. It declined 1 percent this week as the most expensive valuations since 2004 raised concern a two-month stock rally had outpaced earnings prospects.
Japan’s Nikkei 225 Stock Average gained 1.7 percent to 9,249.48. All markets in Asia rose except China.
Tokyo Electron Ltd. climbed 6.1 percent after saying orders for semiconductor equipment will rise this quarter. Rio Tinto Group, the world’s third-largest mining company, surged 8 percent in Sydney after saying it remains committed to a $19.5 billion investment from Aluminum Corp. of China. Singapore Airlines Ltd., the world’s second-biggest carrier by market value, gained 2.1 percent on plans to spin off a unit.
Sony Earnings
Futures on the Standard & Poor’s 500 Index added 0.2 percent. The benchmark rose 1 percent yesterday, snapping a three-day losing streak, as declining funding costs boosted bank shares. CA Inc., the world’s second-largest maker of software for mainframe computers, led gains by technology companies after reporting earnings that beat analyst estimates.
Through yesterday, the MSCI Asia Pacific Index climbed 35 percent from a five-year low on March 9 amid speculation the worst of the financial crisis had passed. Shares on the gauge are valued at 32 times trailing earnings, the highest level since 2004, according to data compiled by Bloomberg.
Sony jumped 5.8 percent to 2,540. The company forecast yesterday it will post a 110 billion yen ($1.1 billion) operating loss this year, better than the median 135.6 billion yen loss estimate in a Bloomberg survey of nine analysts.
The company also said it will close a further five factories in addition to three that have already been announced as part of the company’s restructuring plan.
Borrowing Costs
Hitoshi Kuriyama, an analyst at Merrill Lynch & Co., lifted his price target on Sony by 200 yen to 2,800 because the company “is making steady progress with structural changes and ramping up new business models,” according to a report.
Tokyo Electron, the world’s second-largest supplier of semiconductor production equipment, rallied 6.1 percent to 4,330 yen after saying orders are likely to rise this quarter.
HSBC jumped 2.8 percent to HK$3.33 on optimism central bank efforts to unlock credit markets are bearing fruit. Mitsubishi UFJ Financial Group Inc., Japan’s biggest publicly traded lender by value, added 3.2 percent to 607 yen. Tokio Marine gained 4.8 percent to 2,945 yen.
Libor for three-month dollar-denominated loans fell almost three basis points to 0.85 percent yesterday, according to the British Bankers’ Association.
The rate surged as high as 4.8 percent in October in the aftermath of the collapse of Lehman Brothers Holdings Inc. as banks became reluctant to lend to each other amid collapsing financial markets.
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Sony, the world’s No. 2 maker of consumer electronics, jumped 5.8 percent after the company said it will close factories as part of restructuring efforts. HSBC Holdings Plc, Europe’s largest lender by market value, rose 2.8 percent as the London interbank offer rate slumped. Tokio Marine Holdings Inc., Japan’s biggest property insurer, gained 4.8 percent after a person familiar with the matter said six U.S. insurers will receive government bailout funds.
“Optimism lifts the market, and the gain in equities further lifts optimism,” said Kiyoshi Ishigane, a senior strategist a Mitsubishi UFJ Asset Management Co., which oversees the equivalent of $61 billion in Tokyo. “Like a drunkard waking up with a hangover, investors will eventually be hit with the reality that things haven’t improved overnight.”
The MSCI Asia Pacific Index rose 1.8 percent to 96.97 as of 12:38 p.m. in Tokyo. It declined 1 percent this week as the most expensive valuations since 2004 raised concern a two-month stock rally had outpaced earnings prospects.
Japan’s Nikkei 225 Stock Average gained 1.7 percent to 9,249.48. All markets in Asia rose except China.
Tokyo Electron Ltd. climbed 6.1 percent after saying orders for semiconductor equipment will rise this quarter. Rio Tinto Group, the world’s third-largest mining company, surged 8 percent in Sydney after saying it remains committed to a $19.5 billion investment from Aluminum Corp. of China. Singapore Airlines Ltd., the world’s second-biggest carrier by market value, gained 2.1 percent on plans to spin off a unit.
Sony Earnings
Futures on the Standard & Poor’s 500 Index added 0.2 percent. The benchmark rose 1 percent yesterday, snapping a three-day losing streak, as declining funding costs boosted bank shares. CA Inc., the world’s second-largest maker of software for mainframe computers, led gains by technology companies after reporting earnings that beat analyst estimates.
Through yesterday, the MSCI Asia Pacific Index climbed 35 percent from a five-year low on March 9 amid speculation the worst of the financial crisis had passed. Shares on the gauge are valued at 32 times trailing earnings, the highest level since 2004, according to data compiled by Bloomberg.
Sony jumped 5.8 percent to 2,540. The company forecast yesterday it will post a 110 billion yen ($1.1 billion) operating loss this year, better than the median 135.6 billion yen loss estimate in a Bloomberg survey of nine analysts.
The company also said it will close a further five factories in addition to three that have already been announced as part of the company’s restructuring plan.
Borrowing Costs
Hitoshi Kuriyama, an analyst at Merrill Lynch & Co., lifted his price target on Sony by 200 yen to 2,800 because the company “is making steady progress with structural changes and ramping up new business models,” according to a report.
Tokyo Electron, the world’s second-largest supplier of semiconductor production equipment, rallied 6.1 percent to 4,330 yen after saying orders are likely to rise this quarter.
HSBC jumped 2.8 percent to HK$3.33 on optimism central bank efforts to unlock credit markets are bearing fruit. Mitsubishi UFJ Financial Group Inc., Japan’s biggest publicly traded lender by value, added 3.2 percent to 607 yen. Tokio Marine gained 4.8 percent to 2,945 yen.
Libor for three-month dollar-denominated loans fell almost three basis points to 0.85 percent yesterday, according to the British Bankers’ Association.
The rate surged as high as 4.8 percent in October in the aftermath of the collapse of Lehman Brothers Holdings Inc. as banks became reluctant to lend to each other amid collapsing financial markets.
Read more here
Singapore’s Temasek Sells Stake in Bank of America
(Bloomberg) -- Temasek Holdings Pte, a Singapore state-owned investment company that bought stakes in Merrill Lynch & Co. and Barclays Plc amid the global financial crisis, sold its stake in Bank of America Corp.
Temasek received shares in Bank of America after the biggest U.S. bank by assets bought Merrill Lynch this year. The investment company had paid about $5.9 billion for a 14 percent stake in Merrill Lynch since December 2007, which was converted into Bank of America stock following the completion of the acquisition.
“We have divested our shares in Bank of America,” Temasek said in an e-mailed response to Bloomberg News queries. The company declined to say how much it sold the stake for or when the sale was conducted.
Temasek had 31 percent wiped from the value of its global portfolio in the eight months through November amid the slump in financial markets. The company had sold assets including power generators and Singapore Food Industries Ltd. over the past year while increasing its investments in companies such as CapitaLand Ltd. and DBS Group Holdings Ltd. through rights offers.
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Temasek received shares in Bank of America after the biggest U.S. bank by assets bought Merrill Lynch this year. The investment company had paid about $5.9 billion for a 14 percent stake in Merrill Lynch since December 2007, which was converted into Bank of America stock following the completion of the acquisition.
“We have divested our shares in Bank of America,” Temasek said in an e-mailed response to Bloomberg News queries. The company declined to say how much it sold the stake for or when the sale was conducted.
Temasek had 31 percent wiped from the value of its global portfolio in the eight months through November amid the slump in financial markets. The company had sold assets including power generators and Singapore Food Industries Ltd. over the past year while increasing its investments in companies such as CapitaLand Ltd. and DBS Group Holdings Ltd. through rights offers.
Read more here
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