Merrill Lynch to Get $6.2 Billion From Temasek, Davis |
| Bllomberg - Dec 24, 2007 |
Merrill Lynch & Co., reeling from the biggest loss in its 93-year history, will receive a cash infusion of as much as $6.2 billion from Singapore's Temasek Holdings Pte. and Davis Selected Advisors LP.
Temasek will invest up to $5 billion and New York-based money manager Davis Advisors will buy $1.2 billion of Merrill stock, the brokerage firm said in a statement today. Merrill Chief Executive Officer John Thain, who took over Dec. 1, joins Citigroup Inc., Morgan Stanley and UBS AG in tapping a sovereign wealth fund to shore up capital. Merrill rose 3.9 percent to $57.68 at 10:20 a.m. in New York Stock Exchange trading.
Merrill, the third-largest U.S. securities firm, announced $8.4 billion of writedowns Oct. 24 because of mortgage-related investments and corporate loans. The New York-based firm, which then ousted Stan O'Neal as CEO, may report an additional $8.6 billion writedown for the fourth quarter, according to David Trone, an analyst at Fox-Pitt Kelton Cochrane Caronia Waller.
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- Posted: 2007-12-24 11:05:35
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