Administration April 9, 2009

CVC Capital Partners Wins Barclays iShares Bid

April 9, 2009 (PLANSPONSOR.com) - U.K. bank Barclays PLC agreed Thursday to sell its iShares exchange-traded funds business to European private-equity firm CVC Capital Partners.
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According to Reuters, the deal, which will reap £3 billion ($4.41 billion), brings in cash Barclays can use to increase its buffer against credit losses as the economy worsens. Barclays also has an option to receive 20% of the value of iShares in cash following a future increase in the value of the business.

To get the deal done, the bank agreed to lend CVC £2.1 billion (see Barclays Ready to Announce iShares Deal: WSJ ). Reuters noted that the sell represents a sacrifice for Barclays, underscoring the bank’s eagerness to raise cash and avoid seeking state aid as some of its rivals have done. The iShares unit, offering some 360 exchange-traded funds globally, contributed a significant chunk of the bank’s profits in 2008, the news report said.

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The sale caps several weeks of talks with a variety of interested buyers, with CVC coming into the game late (see CVC Capital Partners in Talks to Buy iShares Business ).

Administration April 8, 2009

Newkirk Wins Patent Infringement Claim

April 8, 2009 (PLANSPONSOR.com) - A Boston federal court jury has turned aside NewRiver's patent infringement lawsuit against Newkirk.
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A Newkirk news release about the jury decision said NewRiver had contended that   Newkirk’s EDGAR-View service infringed on a NewRiver patent that serves as the basis for NewRiver’s ProspectusExpress service.

According to the announcement, the jury found Newkirk had not infringed on any remaining valid claims and also rejected NewRiver’s position that Newkirk had breached an earlier contract  between the two companies when Newkirk developed and sold its EDGAR-View service.

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“Naturally, we’re very pleased with the outcome,” said James Salada, Newkirk’s general counsel.

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