Latest Market News

[XL-entLady]

Barclays May Not Need to Sell iShares ETFs After All

March 27, 2009 at 2:21 pm by Tom Lydon


"After all (http://www.etftrends.com/2009/03/barclays-ishares-etfs-hunting-for-a-buyer.html) the talk (http://www.etftrends.com/2009/03/update-ishares-etfs-looking-for-a-buyer.html) and speculation (http://www.etftrends.com/2009/03/let-ishares-etf-sale-speculation-begin.html), Barclays may not have to sell the iShares line of exchange traded funds (ETFs) after all.
Barclays, Britain’s third-largest bank, passed tests conducted by the United Kingdom’s financial regulator, reports Jon Menon for Bloomberg (http://www.bloomberg.com/apps/news?pid=20601085&sid=aqdil628.fz0). The Financial Services Authority looked over Barclays’s loans and found that the bank will continue to meet capital requirements under a range of scenarios.

That doesn’t mean the iShares deal is off, though: the bank is still in talks to sell it, and may also exchange bonds to boost its capital. The bank had asked bidders to submit their offers by today.
According to people who are familiar, among the bidders are Colony Capital LLC and Bain Capital LLC, two U.S. private equity firms; Goldman Sachs (GS (http://www.etftrends.com/etf/gs/)); and a group of leveraged buyout firms including Hellman & Friedman LLC and Apax Partners Worldwide LLP.

Barclays may announce an agreement by March 31."


http://www.etftrends.com/2009/03/barclays-may-not-need-to-sell-ishares-etfs-after-all.html

Lady

[Marty]

Very interesting. What do you think will happen to the ETFs under ishares if their sold off?

Marty

[etftalk]

Good question.

[XL-entLady]

"Sources say Barclays (BCS (http://seekingalpha.com/symbol/bcs)) has entered exclusive talks (http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=BCS%3AUS&sid=aPfU0h6bVgbQ) with private equity firm CVC Capital Partners to sell its iShares business. Rumored price of £3B is well below initial estimates of £4-5B, but BCS will retain a 20% stake in the ETF business. A deal could help Barclays achieve its goal (http://www.royalgazette.com/siftology.royalgazette/Article/article.jsp?articleId=7d93fab3003000c&sectionId=65) of avoiding government assistance. BCS +2.3% premarket. "

http://seekingalpha.com/?source=refreshed

Lady

[XL-entLady]

We knew it was coming.

"The SEC will consider several proposals to restrict short selling. SEC Chairwoman Mary Schapiro told reporters "we are going to put forward about four different proposals, and one of them does include the original [uptick rule]. There are different modified versions because the markets have changed a lot, even since 2007." Other proposals under consideration include a so-called 'bid test' and a 'circuit breaker.' Schapiro didn't provide details on how the bid test or circuit breaker would work, and didn't elaborate on the fourth proposal."

http://seekingalpha.com/article/129873-wall-street-breakfast-must-know-news

Lady

[XL-entLady]

It’s Official: iShares ETFs Sold

April 09, 2009 at 9:33 am by Tom Lydon

http://www.etftrends.com/wp-content/uploads/2009/04/palm-beach-real-estate-sold.pngIt’s official: Barclays has sold (http://www.etftrends.com/2009/04/report-barclays-sells-ishares-etf-line.html) the iShares exchange traded funds (ETFs) line to a private-equity firm.
CVC Capital Partners Group has purchased Barclays’ successful line of iShares ETFs, reports Jane Wardell for the Associated Press (http://finance.yahoo.com/news/Barclays-sells-iShares-to-CVC-apf-14891927.html?sec=topStories&pos=6&asset=TBD&ccode=TBD). The sale was for $4.4 billion, and Barclays is financing $3.1 billion of the purchase price. The British bank also will be entitled to receive 20% of the equity return from iShares once CVC has achieved certain minimum returns.
The sale will boost Barclays’ capital after it declined a spot in the government’s program to insure toxic assets.
Under the agreement is a stipulation that Barclays can continue to solicit bids for iShares and related businesses for at least 45 business days from April 15.
I’d expect that there will be no hiccups in this transition, and there should be no concern on the part of shareholders as the move takes place. iShares will continue to be a successful and popular line of ETFs.


http://www.etftrends.com/2009/04/its-official-ishares-etfs-sold.html

[XL-entLady]

http://www.reuters.com/article/businessNews/idUSTRE53G1G520090417?feedType=RSS&feedName=businessNews

Big investors buy into stock rally: State St

Fri Apr 17, 2009 5:12am EDT
LONDON (Reuters) - "Institutional investors are participating in a broad-based recovery in equities with the United States leading the way and the euro zone lagging, State Street said on Friday.
The U.S. financial services firm, which tracks buying and selling within the $12 trillion in assets it holds as custodian, said flows into U.S. equities were close to the highest they have been in 12 years.
Specifically, it said, monthly flows into U.S. stocks were in the 98th percentile, meaning they have only been higher in 2 percent of months over the period. "It seems the nightmare may now be ending. Markets have been having quite a party of late," State Street said in a note. "Institutional investors are backing this rally."
It said emerging market equities were also benefiting, with flows into that asset class now in the 71st percentile, the highest since June 2007 before the credit crisis hit.
Flows into euro zone equities were a big exception. State Street said only Austria and Greece were seeing positive flows.
"All the big countries, such as Germany, France, Italy, and the Netherlands saw outflows over the month," it said.
Japan was also having weak flows."


Lady