TEMASEK Holdings has not yet decided on what to do with its stake in Merrill Lynch, which is to be bought by Bank of America, sources said.
Temasek Holdings, which holds about 13 to 14 per cent in the US investment bank was not available for comment but Dow Jones Newswires, citing unnamed sources, said the Singapore firm was holding a meeting to discuss the matter.
'The investment team is meeting now. Their decision on how to handle the Bank of America shares will depend on how they view the long-term prospects of the bank,' the source said.
'Temasek always looks at the long term.'
The Wall Street Journal reported that Merrill Lynch agreed late on Sunday to sell itself to Bank of America for US$50 billion (S$71 billion) in an all-stock deal that values the former Wall Street titan at US$29 a share.
Temasek is the single largest investor in Merrill Lynch after making investments totalling US$8.3 billion.
Merrill Lynch has been forced to sell itself to seek fresh capital after making huge losses following the meltdown in the subprime, or higher risk, US mortgage market. -- AFP
