Barclays is in exclusive talks to sell its iShares asset management unit to CVC Capital, Barclays president confirmed to CNBC.
Bob Diamond said selling iShares was a difficult decision, but decided to take the move in order to raise capital and avoid being forced to let the British government take a portion of the company’s stake.
iShares is a family of exchange-traded funds operated by Barclays Global Investors and is one of the largest issuer of ETFs in the United States and globally.
Diamond said that he does not believe Barclays will need to raise new capital. He said the bank has enough capital to withstand the deteriorating economy.
Diamond also said the company has a relatively strong start from the beginning of the year, however January and February represented a much better environment than in March.
Shares of Barclays rose on Monday as investors bought into the idea that the bank is performing better than its rivals.
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Note: This story was corrected to show Bob Diamond said Barclays will not need to raise new capital. It originally reported Diamond as saying the bank would not need to raise new capital in the next six months.