Merrill compensates Temasek US$2.5 b for loss in share price

• lionnoisy

  2 Aug 08, 11:22

   

  Merrill compensates Temasek US$2.5 billion for drop in share

  price.So,it is genius for Temasek,share price up,it will gain.

  Share price drops,it will be compensated!!

  Will u all guys pl be more professional in discussion.

  Dunt just copy and paste without digestion.

  Temasek is not so stupid just to buy shares blindly and becomes

  Merrill's largest shareholder.

  When Temasek bought US$5 b shares sometimes back ,

  there was a reset provision

  that if Merrill issue share later at price lower than what Temasek

  bought,Merrill has to compensate Temasek fully.

  Now Merrill compensates Temasek US$2.5 b,

  though Temasek uses all 2.5 b to buy new issued shares.

  UBS and CITI deals are just creditors

  Up to today,Temasek are just lenders ,BUT NOT SHARE HOLDERS

  OF UBS and CITI.The reasons are many,among them

  is Temasek dunt know the full picture of subprime.

  But it is a once in few decades chance to get a big share in big and great

  companies.

  Temasek is vey cautious in UBS and CITI deals by becoming just a lender,

  but not a share holder.

  Previoulsy, it is suprised to me that Temasek bought

  Merrill share without protections.

  The truths are it incorporates price protection and ,i read

  from other news,that Temasek get dilutions protections also.

  Temasek, Merrill's largest shareholder, will get $2.5 billion from Merrill stemming from reset provisions in the firm's previous sales of securities. Temasek agreed to invest all that money back into Merrill's new offering at the same price as other investors.Merrill said there are no reset provisions as part of its new sale of common stock.
  

  Sorting out the resets from the previous capital raise will cost $2.5 billion, which will be reported as an expense in Merrill's third-quarter results, the firm said.

  Alistair Barr is a reporter for MarketWatch in San Francisco.

  http://www.marketwatch.com/news/story/merrill-raising-85-bln-selling/story.aspx?guid={A7AF92E3-5F8A-45A6-AEF8-59B966E260DF}&dist=msr_1

  2.news

  http://afp.google.com/article/ALeqM5iPdwYnuGB5awF1tx50Nx_Ytrdm2A

  Temasek said its new commitment "includes a sum of US 2.5 billion dollars arising from a reset payment which Merrill Lynch has agreed to pay to Temasek as an adjustment to the price of Temasek's original investment made in December 2007."The Singapore firm is putting that 2.5 billion back into Merrill, along with another 900 million dollars.

• maurizio13

  2 Aug 08, 11:30

   

  deemed for closure.

  existing thread

   

   

• oxford mushroom

  2 Aug 08, 15:38

  Originally posted by maurizio13:

   

  deemed for closure.

  existing thread

   

  After the Mod has deleted the previous thread for disseminating falsehood.

   

• FireIce

  2 Aug 08, 15:40

  http://www.sgforums.com/forums/10/topics/325327