Merrill Lynch has struck a deal to sell its 20% share of Bloomberg back to the news and financial data firm’s corporate parent for an estimated US$4.5 billion. The bank is expected to announce significant second quarter losses today of around US$6 billion, its fourth straight quarterly loss since last year’s credit crunch.
The sale would help the Wall Street investment bank to raise capital to offset these write-downs, which could represent a loss of US$1.94 per share, according to Reuters estimates.
Bloomberg founder Michael Bloomberg, who currently holds 68% of the shares in the firm, is said to have approved the decision.
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