Merrill closer to selling BlackRock stake

As it faces $6 billion in new write-downs, Merrill Lynch may sell its BlackRock and Bloomberg interests.
JUL 07, 2008
Merrill Lynch & Co. Inc. is moving closer to selling its stakes in BlackRock Inc. and Bloomberg LP, as it looks to make up for $6 billion in new write-downs, people familiar with the matter told The Wall Street Journal. The New York-based brokerage firm will likely seek about $5 billion for its 20% stake in Bloomberg, a price lower than it might fetch on the open market, according to the report. The New York-based business news and information company has the right of first refusal over the stock sale. Merrill also expects to meet with high-ranking officials at BlackRock, the New York-based money manager in which it owns a 49% stake, valued at more than $12 billion. If Merrill does not sell its BlackRock stake, it is likely that it will sell part of its interest and attempt to maintain a strategic alliance with the company, the Journal reported. Merrill cannot sell its BlackRock stake before 2009 without the agreement of BlackRock's board. Merrill said it will post second quarter earnings on July 17.

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