ft.com/alphaville

Yes, yes we know it is all over the papers and in the 6am cut, but we just could not resist it.

From Friday’s statement announcing the receipt of a binding $13.5bn offer for Barclays Global Investors.

Emphasis ours.
Robert E Diamond Jr, who has been Executive Chairman of BGI since 2003, holds shares and options over shares in BGI Holdings. These interests were awarded before he was appointed to the Board of Barclays in June 2005. As a BGI Holdings shareholder and option holder, he would receive net consideration of approximately US$36 million (£22 million) before any applicable deductions. Mr Diamond would have paid, over the period 2003-2009, US$ 10.0 million (£6.0 million) to acquire his shares.

That’s a gain of $26m, or £16m.

But for those cynics out there please remember;

Mr. Diamond took no part in the consideration of the iShares transaction. With the approval of the Barclays Board, Mr. Diamond has been involved in discussions leading to the BlackRock Offer, although he took no part in the Barclays Board’s decisions relating to the transactions described in this announcement, including the determination that the BlackRock Offer is superior to the CVC Transaction from the perspective of the Barclays Board.

( PS - Diamond Bob is the one on the right).Related link:Update:
Some transaction highlight. (H/T Cazenove).BlackRock will pay US$13.5bn, comprising US$6.6bn in cash and US$6.9bn in new BlackRock shares, which will result in Barclays having a 19.9% stake in the enlarged group. Barclays’ equity interest will be in the form of ordinary shares (4.9%) and non-voting participating preferred stock, which converts into equity if transferred.

There is a lock-up provision: 100% for the first year and 50% for the second year, though BlackRock’s consent for a sale would “not be unreasonably withheld”.

The group will provide BlackRock with a 364-day credit facility of up to US$2.0bn, of which US$0.8bn has been committed by other banks.

Barclays is no longer able to solicit other proposals or to continue negotiations with other interested parties. CVC has until 18th June to submit a matching offer.

The disposal is expected to complete by the year end. It is contingent upon shareholder approval and BGI’s run-rate revenues at completion being at least 75% of the 30 April level. The consideration is subject to a downward-only price adjustment mechanism, based on changes in BGI’s annualised run-rate revenues between 30 April and completion, excluding the impact of market movements and subject to a cap of US$1.4bn.

The sale price represents 90bp of Dec08 AUM and 12.1x 2009E earnings.

Related link:
BlackRock to buy BGI for $13.5bn - FT