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Merrill may bid Bloomberg adieu

Merrill may bid Bloomberg adieu

(31 October 2007 – USA) After writing down US$8.4 billion in assets in its third quarter, US investment bank Merrill Lynch is rumoured to be considering selling its 20 percent stake in financial information company Bloomberg. The stake could be worth between US$5 and 10 billion, giving Bloomberg an overall value of US$50 billion.

Analysts in the USA have pointed out that selling its stake in Bloomberg would be a cheaper and more effective way for Merrill to raise capital than selling securities, and that there would be market interest in buying Bloomberg.

Merrill’s interest in Bloomberg dates back to 1985 when it first invested in the company with the stake hitting 30 percent by 1990.

Merrill is unable to sell its stake to any of Bloomberg’s competitors and Bloomberg has first choice on whether it wants to buy the stake.
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