Tuesday, June 9, 2009

Blackrock for the Win

It sounds as though asset management giant Blackrock is the front runner to acquire iShares and Barclays Global Investors from very large bank Barclays. I would have liked to be in the Blackrock meeting where they laid out the game plan - the game being to rip everyone else's face off at their moment of greatest witness. It was probably around the time of the Bear Stearns cardiac arrest and has been playing out spectacularly.

Blackrock was fresh off its acquisition of Merrill Lynch's buyside unit so you could argue that they already had a lot of their plate when all this started going down. Revenue has gone up tenfold since 2004 including the Merrill deal. Instead, through the turmoil, Blackrock has managed to insert itself a money manager or risk manager of choice in almost every important deal and workout from the Bear Stearns unwind up to and including PPIP if that happens.
Now they're getting a lot bigger for a price tag under $10 billion. Nice job.

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