Barclays has sold its iShares business to private equity firm CVC Capital Partners for $4.4 billion, continuing its efforts to shore up its capital base. But, reflecting Barclays' eagerness to close a deal as well as the fact that private equity firms are only willing to do deals if leverage is secured, the UK bank will provide $3.1 billion of debt financing to CVC to effect the deal.
Barclays will book a net gain on the sale of $2.2 billion, taking into consideration goodwill of $1.4 billion, from a business it has mostly grown organically over the past five years. Including this gain and the capital it raised primarily from Middle Eastern investors in...
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