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.
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.
