Investment bank Merrill Lynch & Co. said Monday it sold a stake in itself to Temasek Holdings and Davis Selected Advisors for $6.2 billion as it looks to strengthen its balance sheet.
Temasek, an investment fund for the government of Singapore, will acquire $4.4 billion in Merrill Lynch common stock. Temasek has the option to purchase an additional $600 million of common stock by March 28. The investment is for no more than 10 percent of common stock.
Davis Selected Advisors will receive common stock from an $1.2 billion investment as well. Both investors will remain passive.