Bloomberg said to be eyeing Merrill stake
The New York mayor's blind trust could fork out up to $5 billion to purchase Merrill's 20% stake in Bloomberg LP.
New York Mayor Michael Bloomberg may be willing to fork out between $4.5 billion and $5 billion to purchase Merrill Lynch & Co. Inc.’s 20% stake in Bloomberg LP, according to the New York Post.
The talks to sell the stake are under way, according to the Post.
The New York-based brokerage firm has been looking for suitors to purchase the stake in the financial information and news company as it aims to raise cash to offset an expected $6 billion in new write-downs related to mortgage investments and other credit-related problems. (InvestmentNews, July 7).
Merrill Lynch will announce its second-quarter earnings July 17.
The brokerage firm has also been looking to sell off a portion of its 49% stake in BlackRock Inc., a New York-based money management firm, which it purchased in February 2006.
A Merrill Lynch spokeswoman declined to comment on the story.
A call to New York-based Bloomberg was not immediately returned.
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