A US fund manager is one of the possible bidders for Barclays Global Investors asset management arm, according to reports.

The business - one of the most valuable assets of the Barclays banking group and estimated to be worth around $10 billion (£6.6bn) - could be targeted by BlackRock.

The banking giant is already offloading its iShares fund management business, which is the most profitable part of BGI, in an agreed £3 billion sale to CVC Capital Partners.

However, Barclays said it had received a number of rival approaches for the iShares business under the "go shop" clause in its sale to CVC, and has 45 days to secure a higher bid. CVC must be given the chance to match any higher offer, but if it declines it will receive a £175 million break fee.

It was reported last weekend BC Partners had entered the fray with a proposed rival £3.5 billion bid. A sale of BGI could also net further hefty windfalls for top managers who own shares in it, including a possible £12.5 million payout for Barclays' investment banking chief Bob Diamond.

Mr Diamond stands to gain around $6.9 million (£4.5m) from the iShares sale, but it is thought this could almost triple on the sale of the entire BGI group.

An update will be provided after the June 18 deadline for rival iShares bids, added the bank.

BGI was launched more than 30 years ago and now employs around 3,700 staff across operations in more than 15 countries. It has £1.05 trillion in assets under management and a 2,900-strong client base.

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