Deals & People June 1, 2009

Vanguard Offers $5B for iShares

The Vanguard Group has submitted a $5-billion bid for the iShares unit of Barclays, according to news reports.
Reported by

The London Telegraph reported William Blair & Co. of Chicago is advising Vanguard in the matter.

Even though there is a previous deal agreed on in April to sell iShares to CVC Capital for $4.4 billion, Barclays reserved the right to keep looking for another suitor until June 18 (see “Barclays Still Entertaining Suitors for iShares’).

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CVC has the right to match any subsequent offer accepted by Barclays and will receive a break fee if Barclays decides not to sell iShares to it.

The news report said Barclays is also entertaining offers for Barclays Global Investors, which includes iShares (see “Barclays Reportedly Considering Broader BGI Deal’). Bloomberg reported inquiries for a broader deal from BlackRock Inc. and Bank of New York Mellon for a price analysts estimated at as much a $10 billion—more than double the $4.4 billion Barclays would be in line to get by selling iShares.

The Markets June 1, 2009

Mass. City Teachers’ Agreement Includes 403(b) Match Cut

Newburyport (Massachusetts) School Committee member George Moker said teachers have agreed to give back on several items in order to achieve an agreement in tough economic times.
Reported by

In the three-year contract that will take effect September 1, teachers agreed to give up matching contributions to their 403(b) retirement accounts, according to The Daily News of Newburyport. Teacher steps, a program which enables teachers to earn more in salary for completing graduate coursework and advanced degrees, has also been reduced by 75% the first year and 50% the second year.

The contract provides that teachers will receive a 2% raise the first year and 2.75% raises the last two years, according to committee Chairman Anne Donahue, the news report said.

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