Banks are going for a song if you’ve got the cash to spare. Or at least they would be, if their share price didn’t keep on falling.
Here is Temasek’s SEC filing on that recently acquired $4.4bn stake in Merrill.
According to which, Temasek has acquired 91.7m shares in the bank. Which, if you do the maths – and Matt Koppenheffer has (hat tip Dealbreaker) – works out so:
Based on the announced $4.4 billion initial investment from Temasek, the deal was priced at $48 per share — an 11% discount to the stock price on the day of the announcement and an 8% discount from yesterday’s price.
It couldn’t fall another 11 per cent, surely…
“Yesterday” above being Thursday. Merrill’s closing shareprice on Friday? Down another 3.27 per cent at $50.29.
Still, when Merrill announces its Q4 results, unless they’re really earth-shatteringly bad, chances are that the stock will up.