The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:BlackRock Sale Could Bring Merrill Cash Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, June 27, 2008

BlackRock Sale Could Bring Merrill Cash

News summary by MFWire's editors

Now that BlackRock's fund group is all-Dolled up, will it have a new place to go? There is some chance, if the credit crisis continues, the Merrill Lynch will sell some or all of its 49 percent stake in Black Rock, reports the WSJ's Heard on the Street column.

Merrill Lynch CEO John Thain brought up the possibilities of the wirehouse selling off its BlackRock stake or a 20 percent stake it holds in Bloomberg LP, which is worth more than $5 billion, during a presentation to investors at a Deutsche Bank sponsored conference.

The BlackRock stake could raise more than $12 billion if Thain sells it. One complication, though, is that BlackRock's board must agree on any sale that takes place before 2009. Still, BlackRock CEO Larry Fink could possibly see the logic in severing ties to the Merrill distribution channel if it opened doors at the other wirehouses and mutual fund distributors.

Thain's decision on what to do could come relatively soon. On Thursday Goldman Sachs analyst William Tanona and Sanford C. Bernstein & Co. analyst Brad Hintz both revised their predictions for Merrill's earnings downward. Tanona is now predicting that Merrill will lose $2 per share for the second quarter and take write downs of $4.2 billion (he had earlier predicted a profit of $0.25 per share). He also expects Merrill to lose $3.5 billion for the entire year.

Investors responded by dropping Merrill shares 6.8 percent in value on Thursday. 

Edited by: Sean Hanna, Editor in Chief

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use