Sunday, December 30, 2007
When $4.4 Billion is not enough
You find yourself in the position of Merrill Lynch, desperately seeking new capital to keep your company afloat.
John Thain, the new chief executive of Merrill Lynch, is this weekend in talks with Chinese and Middle Eastern sovereign wealth funds that could lead to the sale of another big stake in the US bank in a desperate bid to raise capital, according to sources in London and New York.Like Atrios says, the Big Shitpile.
The discussions come just days after Thain was forced on Christmas Eve to sell $4.4bn (£2.2bn) of stock to Singapore investment firm Temasek as part of a wider plan to raise some $7.5bn.
Analysts have so far predicted that the bank will be forced to write down between $10bn and $11.5bn, but the value of the assets affected by the credit crunch is falling in value by the day as the market continues to seek a way out of one of the worst liquidity crises in history.
Subscribe to Posts [Atom]
Post a Comment