The Financial Times is reporting that Merrill Lynch will decide between now and when it reports June quarter earnings whether it will dispose of its 20% stake in Bloomberg and its 49% stake in Blackrock.
"People close to the situation said Mr Thain could approach Bloomberg and BlackRock next week to discuss a possible sale, but added that any deal could be complicated by restrictions on Merrill’s ability to dispose of the holdings."
From a strategic standpoint, it doesn't make much sense for Merrill to continue to own Bloomberg, so that should be first to go. If they decide to dump their Blackrock stake, it won't be the end of the world but a sign of how tough the situation is. Blackrock has been a winner and should continue to be. Merrill Lynch has to be one of Blackrock's biggest distribution outlets so it's an important relationship. Merrill brokers need an asset manager of choice. They might as well own a piece of it.
By the way, Google buying the Bloomberg stake and beefing up Google Finance is a layup as far as I'm concerned.
long MER
"People close to the situation said Mr Thain could approach Bloomberg and BlackRock next week to discuss a possible sale, but added that any deal could be complicated by restrictions on Merrill’s ability to dispose of the holdings."
From a strategic standpoint, it doesn't make much sense for Merrill to continue to own Bloomberg, so that should be first to go. If they decide to dump their Blackrock stake, it won't be the end of the world but a sign of how tough the situation is. Blackrock has been a winner and should continue to be. Merrill Lynch has to be one of Blackrock's biggest distribution outlets so it's an important relationship. Merrill brokers need an asset manager of choice. They might as well own a piece of it.
By the way, Google buying the Bloomberg stake and beefing up Google Finance is a layup as far as I'm concerned.
long MER
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