As expected, New York Mayor Mike Bloomberg's blind trust is interested in buying Merrill Lynch & Co. (NYSE: MER)'s 20% stake in Bloomberg LP for between $4.5 billion and $5 billion, according to The New York Post.
The acquisition would give Bloomberg total control over his namesake media company and my employer for seven years. Merrill, of course, also is looking to unload its 49% stake in Blackrock Inc. (NYSE: BLK) to shore up its balance sheet. No word on potential buyers there.
As I posted yesterday, Mike Bloomberg is a logical buyer for the Merrill stake in his company. Bloomberg has the right of first refusal of the sale as well, which probably scared away the few other potential buyers that were out there. Bloomberg LP also prides itself on being a private company that marches to the beat of its own idiosyncratic drummer.
Merrill shareholders, including a close relative, have not had too much to smile about lately. Shares of the New York-based investment bank are down more than 41% this year. Obviously, it's selling its assets from a position of weakness. The New York mayor will gain control over his media empire at a bargain that would have been unimaginable a few years ago.
Merrill Lynch may get offer for Bloomberg stake from Mike Bloomberg
Posted Jul 9th 2008 5:10PM by Jonathan Berr
Filed under: Deals, Merrill Lynch (MER)
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