Singapore's Temasek confirms US$3.4 billion Merrill stake

Source: Exec Digital USA

Date :7/29/2008 2:09:41 AM

Singapore's state-linked investment firm Temasek Holdings, Merrill Lynch’s largest shareholder, has confirmed it is increasing its stake.

In a brief statement to AFP, Temasek said it “confirms its commitment of US$3.4billion in the public offering by Merrill Lynch, a portion of which is subject to regulatory approval.”

The move is the latest Singapore investment in global financial houses battered by a crisis that began in the US subprime, or higher-risk, mortgage sector.

Merrill warns of further losses

The troubled bank announced yesterday, July 28, it was dumping billions of dollars of mortgage debt at a steep loss and raising US$8.5billion in new capital.

The subprime crisis has wreaked havoc in financial markets and led to a credit squeeze that sparked fears for the global economy.

Merrill, the third biggest US investment bank, has already written off nearly US$40billion in four consecutive quarters of losses.