By Philip Aldrick Last Updated: 7:11PM BST 09 Apr 2009  Barclays is providing £2.1bn of debt for the acquisition, with CVC putting in the rest. The deal will help strengthen the bank's books by increasing its core tier one capital ratio from 6.7pc to 7pc, according to analysts Credit Suisse. Although the sale was expected, Barclays shares jumped 19.7 – or 12.5pc – to 177.5p.  Among the main beneficiaries are Bob Diamond, the bank's president, who will make £4.7m in cash from the deal. The payout will help make up for his decision to forgo a bonus last year, which left him with his base salary of £250,000 and a previously committed cash award of £7.5m. In 2007, he earned £21m, making him one of the country's best-paid bankers.  Staff own 4.5pc of the business and have another 5.8pc of options, which will translate into a windfall of just over £150m – or £750,000 each. The figures are slightly lower than expected because iShares was valued on Barclays' books at £1.5bn, not at zero as thought.  Barclays has also negotiated a "go-shop provision" that allows it to solicit better bids until June 18 and will receive another payment in two years' time if certain targets are met, which it has valued at £355m. It is understood that Barclays received 27 bids during the auction process. Should it accept a higher offer during the 45-day period it would pay CVC a £120m break fee. If CVC pulls out the fee is £34m.  John Varley, chief executive, said: "Barclays shareholders will benefit from a reinforcement of our capital base and an ongoing commercial relationship with iShares." "The majority" of the 620 iShares staff will transfer across to CVC, the bank added.  The deal does not improve its capital position as much as anticipated, leaving the bank with one of the worst tier one ratios in the industry. Analysts had hoped the sale would improve the bank's capital position by a percentage point but the 54 basis points Barclays claimed the deal added fell to just 30 basis points due to the £2.1bn of "vendor financing" it is providing.  Société Générale reckons Barclays needs another £12bn-£17bn of capital and Credit Suisse yesterday urged the bank to follow rivals and buy back £10bn of its own debt. "An offer of £10bn with 65pc take-up at 50p in the pound would create a gain of around £4bn" and lift its core tier one ratio to about 7.9pc, Credit Suisse said.  Barclays has time on its side, though. The financial regulator gave the bank's capital position the all-clear recently, allowing it to avoid using the Government's toxic debt insurance scheme. Mr Diamond has since said the bank will not have to raise new capital for six months.  So far, it has avoided tapping the UK taxpayer for capital – raising £7bn via a placing with Middle Eastern investors last year. It is expected to remain profitable this year, which will further help rebuild capital.
Around 200 Barclays bankers will share in a &pound;150m windfall after the lender    yesterday agreed to sell its iShares exchange-traded funds business to    private equity firm CVC for $4.4bn (&pound;3bn).