Barclays PLC(BARC.LN) said Thursday it considers the disposal of Barclays Global Investors, or BGI, business to BlackRock to be in the best interests of the company. As a result the company unanimously recommends shareholders to vote in favour of the resolution.

MAIN FACTS:

-The board believes that the offer from Blackrock would allow Barclays to retain an ongoing interest in the potential upside from the larger combined business while unlocking significant capital in the short term.

-It expects this transaction to generate consideration of $13 billion, although based on last night's closing price for Blackrock shares the total consideration would now be $14.2 billion.

-Barclays will receive $6.6 billion or GBP4.1 billion in cash with the balance of the consideration consisting of nearly 38 million Blackrock Shares, representing an economic interest of 19.9% in the enlarged Blackrock Group, which will be renamed Blackrock Global Investors.

-This economic interest allows Barclays shareholders to participate in - and enjoy a strong relationship with - the global leader in the industry, with full dividend rights from the holding and an opportunity to benefit from the value upside and synergies arising from the transaction.

-As part of the ongoing relationship between Barclays and Blackrock, John Varley - Barclays Chief Executive - and Bob Diamond - Barclays President - will be nominated to the Board of Directors of Blackrock.

-Taking into account the expected net gain on sale, Barclays would have reported a pro forma Core Tier 1 ratio of 8.8% and a Tier 1 ratio of 11.7% as at Jun. 30.

-The Group achieved a profit before tax of GBP3 billion in challenging market conditions.

-Remains the group's intention to resume dividend payments this year.

-For the second half of 2009, Barclays intends to make a cash payment in December, with a final cash dividend for the year being paid in March next year.

-Barclays wants to maintain strong capital ratios and therefore expect that the proportion of after tax profit distributed through dividends will be significantly lower, for the foreseeable future, than the 50% payout level which we have operated in recent years.

-Barclays Board considers the disposal of BGI to be in the best interests of the company. Because of his holding of shares and options in BGI Holdings under the EOP Scheme, Bob Diamond did not participate in the board's approval or recommendation of the disposal although he will vote in favour of the resolution in respect of his own beneficial shareholdings in Barclays.

-Barclays Board, with Bob Diamond rescusing himself for this purpose, unanimously recommends Barclays shareholders to vote in favour of the resolution.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com