Shanghai Daily: Business - shanghaidaily.com
Merrill Lynch & Co, the world's biggest brokerage, agreed to sell most of its commercial finance business to General Electric Co's finance arm for an undisclosed price to free up capital after subprime losses. The sale of Merrill Lynch Capital's corporate, equipment, energy and healthcare finance units is expected to be completed in the first-quarter, the companies said yesterday in a Business Wire statement. The deal will add more than US$10 billion in assets to GE Capital. The transaction is part of New York-based Merrill Lynch's "strategic focus on divesting non-core assets," and will release about US$1.3 billion of capital to be redeployed elsewhere, said Chief Executive Officer John Thain in the statement. Merrill, on October 24, announced US$8.4 billion of writedowns on mortgage-related investments and corporate loans. The firm, which ousted Stan O'Neal as CEO in October, may report an additional US$8.6-billion writedown for the fourth quarter, according to David
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The major source of Merrill Lynch’s $6.2 billion cash infusion, announced Monday, was fairly unsurprising: Singapore. It is just the latest Asian country to invest in a troubled financial firm, following China’s decision to pour $5 billion into Morgan Stanley. Merrill’s other investor, however, was a bit of a dark horse. It was Davis Selected Advisors, a [...]