Barclays in talks to sell BGI – source

British bank Barclays Plc is in talks to sell its asset management business, Barclays Global Investors, a source familiar with the matter said.

By 0720 GMT Barclays shares jumped 8.3 percent at 274 pence. They have soared five-fold since slumping to 47.3p in January.

The Financial Times reported on Friday that Barclays was discussing a sale of the business for up to $10 billion to potential bidders including U.S. money manager Blackrock.

Barclays and Blackrock declined to comment.

Barclays has already agreed the sale of exchange-traded funds unit iShares, part of BGI, for 3 billion pounds ($4.5 billion) to buyout firm CVC Capital Partners.

As part of that deal, it is allowed to seek rival offers under a 'go shop' clause before June 18. It has subsequently received new interest from both trade and private equity buyers in the business.

Barclays will need to pay CVC a $175 million break-up fee if sells iShares to another bidder.

Any contenders under the go shop clause may also take a close look at BGI, the world's biggest fund manager, because it shares some businesses with iShares, such as its stock lending business.

BGI has 1.040 trillion pounds in assets under management, including 226 billion at iShares.