Mar. 16--Barclays shares jumped 19 percent today after it confirmed it may sell part of its fund-management arm amid talks with the Government about insuring toxic assets.

The bank said it was considering the sale of iShares, part of Barclays Global Investors, and "has held discussions with a number of potentially interested parties", thought to include US institutions and private-equity investors.

Chief executive John Varley hopes to get £4 billion to £5 billion for iShares, staving off the need to raise further cash from shareholders, foreign investors or the Government.

Barclays also said it enjoyed "a strong start to 2009" and shares rose 14.2p to 88.3p to make it worth £7.4 billion -- suggesting the £4 billion to £5 billion price tag on iShares is too high.

San Francisco-based iShares, which specialises in exchange-traded funds, accounts for 22 percent of the £1 trillion under management at BGI and about half its profits. BGI and delivered £600 million of Barclays' £6 billion profit last year.

The auction of iShares comes as Barclays decides whether or not to join the asset-protection scheme, set up to insure billions of pounds of junk on banks' balance sheets. It confirmed it is in talks with the Treasury and Financial Services Authority, but wants to pay in cash rather than shares if it joins.

Varley is desperate not to hand a stake to the Government, and selling iShares would improve the bank's capital position and give him cash to pay for Government support.

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