LONDON- BRITISH bank Barclays is close to selling its asset management arm to US money manager BlackRock in a deal worth US$13 billion (S$18.9 billion), media reported on Sunday.

The Sunday Telegraph newspaper, which cited people close to the matter, said the sale of Barclays Global Investors (BGI) could be announced this week.

BlackRock was expected to pay with cash and shares, leaving Barclays with a 20-per cent stake in the combined US group, the weekly newspaper said.

The transaction will also be financed partly by investors from oil-rich Gulf investors in Abu Dhabi, Kuwait and Qatar, in return for a stake of up to 12 per cent, the paper added.

A Barclays spokeswoman declined to comment on the report.

The British bank is currently seeking to strengthen its balance sheet in the wake of the world banking crisis.

Earlier this year, Barclays sold part of the BGI business, iShares, to private equity group CVC Capital Partners for US$4.4 billion.

The move helped the bank avoid having to join a government insurance scheme for risky assets. -- AFP