--------------------------------------------------------------------------------
Re: long term investment, why lost billions?
--------------------------------------------------------------------------------
May 15, 2009
Temasek sells BOA stake
By Alvin Foo
Singapore state investor Temasek Holdings has divested its entire state in Bank of America. -- ST PHOTO: TAN SUAN ANN
SINGAPORE'S state-owned investment vehicle Temasek Holdings said today that it has sold its entire stake in the Bank of America.
A Temasek spokesman said: 'We have divested our shares in Bank of America.'
The Straits Times understands the sale was done via a series of transactions in the first quarter of this year.
Temasek declined to reveal the average price it got for its 188.8 million shares, but preliminary estimates put the potential loss at a whopping US$4.26 billion.
Temasek had paid about US$5.9 billion for a 13.7 per cent stake in Merrill Lynch since December 2007, which was converted into Bank of America stock following the completion of the acquisition. This gave it a stake of some 188.8 million Bank of America shares, or about 3.8 per cent.
Reuters cited a source briefed on the deal saying that the shares were sold for between US$2.53 and US$14.81 in the first quarter.
Based on a Reuters calculation which assumed an average price of US$8.67, Temasek may have suffered a loss of about US$4.26 billion.
Temasek's net portfolio value dropped 31 per cent between March 31 and Nov 30 last year, from $185 billion to $127 billion.
when auntie hoot goes shopping peasants sure get jinxed and later really get hooted! there goes our everything.....
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment