Vanguard Offers $5B for iShares

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

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’).

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.