LONDON (AP) — British bank Barclays said yesterday that US investment manager BlackRock Inc.'s offer for its asset management arm, Barclays Global Investors, was a "compelling proposal" that could generate as much as $14.2 billion.

Barclays said that the transaction would generate around $13 billion — rising to $14.2 billion based on Wednesday's closing price — and had the advantage of allowing the British bank to retain a stake in the business.

BlackRock announced last month that it had made the offer for Barclay's BGI arm, including its highly profitable iShares business, in a deal that would make it the world's largest asset manager.

Barclays originally had planned to sell San Francisco-based iShares to CVC Capital Partners for $4.4 billion. But under a "go shop" clause in the agreement, Barclays had the option of hunting for a better offer.

Barclays chairman Marcus Agius said yesterday that the British bank would receive $6.6 billion cash under the new deal, with the balance of the consideration consisting of nearly 38 million Blackrock Shares.

That will give Barclays a 19.9 percent stake in the enlarged Blackrock Group, which will be renamed Blackrock Global Investors.