Temasek Increases Stake In Merrill

July 2008 | M&A News Alert

As CFW has previously noted, every week seems to bring another example of emerging market sovereign wealth funds (SWF) coming to the aid of a troubled western bank, and this week is no exception. On July 29, Singapore sovereign wealth fund Temasek Holdings announced that it will significantly increase its stake in Merrill Lynch, despite the paper losses the SWF accrued when they last took a stake in the US bank. Although at first glance this seems just another example of an already well established investment trend, the circumstances surrounding the deal in fact highlights why many SWFs may increasingly think twice before continuing to snap up bank assets so readily.

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