Saturday, June 28, 2008

Merrill's Bloomberg stake

Thain from Merrill says their 20% stake in Bloomberg is worth $6 billion. Bloomberg says he'll pay $3 billion for the stake. So Thain says he'll now raise capital by selling Merrill's stake in Blackrock instead.

And then, Mother Merrill can keep their $3 billion stake in Bloomberg penciled in at $6 billion. It was only a few weeks ago, that Thain wanted to use it's stake in Bloomberg as equity capital, a suggestion that was promptly dismissed.

And even a couple days ago, Thain was saying the stake is worth $5-6 billion.

So Merrill will sell their over-priced Blackrock stock instead.

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