Merrill Takes Huge Write-downs, And Sell Shares To Raise Capital
Merrill sets $5.7 billion write-down, to sell stock
Reuters
28 Jul 2008
NEW YORK (Reuters) - Merrill Lynch & Co (MER.N: Quote, Profile, Research, Stock Buzz) said on Monday it will take a $5.7 billion third-quarter write- down as it unloads huge amounts of risky debt, and raise $8.5 billion by selling new stock.
The Wall Street investment bank and brokerage announced its plans less than two weeks after posting a $4.9 billion second- quarter loss, hurt by more than $9 billion of write-downs.
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Merrill to sell troubled assets, raise capital
Associated Press
NEW YORK (AP) — Merrill Lynch & Co., in a broad move to clean up its troubled balance sheet, said Monday it will sell a big slice of its asset-backed securities and issue new stock to raise $8.5 billion of fresh capital.
The world's largest brokerage, struggling to right itself as the credit crisis continues, said it will issue more than 200 million new common shares as part of the deal. Merrill said it will write-down $5.7 billion because of additional losses on the sale of mortgage securities and hedging contracts.
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Singapore's Temasek confirms investment in Merrill
Reuters
28 Jul 2008
SINGAPORE, July 29 (Reuters) - Singapore state investor Temasek Holdings [TEM.UL] said on Tuesday it had increased its investment in Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) as part of the U.S. broker's latest fund-raising effort.
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Merrill shocks Wall Street with $8.5bn share sale
The Independent
28 Jul 2008
Merrill Lynch, the investment banking giant that has lost more than $40bn (£20.1bn) on its mortgage investments since the start of the credit crisis, shocked Wall Street last night with plans to raise $8.5bn in new shares.
As part of a sweeping financial restructuring, the company is dumping most of its remaining holdings in risky mortgage derivatives and tapping the Singapore government for an emergency $3.4bn cash infusion.
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Merrill Lynch forced to take emergency action ahead of writedown
Times Online
28 Jul 2008
Merrill Lynch sought to bolster its balance sheet and reduce its risk last night when it announced moves to raise $8.5 billion (£4.27 billion) and the sale of $11.1 billion worth of high-risk mortgage-backed securities.
The group said it would record a $4.4 billion writedown in its third-quarter from the sale of the securities, known as collateralised debt obligations (CDOs), or pools of mortgage bonds, in a disposal that represented the majority of Merrill’s remaining CDO portfolio.
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Merrill sets $5.7 billion write-down,to sell stock
Guardian.co.uk
28 Jul 2008
NEW YORK, July 28 (Reuters) - Merrill Lynch & Co said on Monday it will take a $5.7 billion third-quarter write- down as it unloads huge amounts of risky debt, and raise $8.5 billion by selling new stock.
The Wall Street investment bank and brokerage announced its plans less than two weeks after posting a $4.9 billion second- quarter loss, hurt by more than $9 billion of write-downs.
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