Merrill Lynch launches auction of Bear Stearns fund assets
Published June 21st, 2007
Merrill Lynch & Co. on Wednesday launched an auction of assets from two troubled hedge funds controlled by Bear Stearns Cos., triggering a rarely seen confrontation between two major Wall Street players.
Multiple people familiar with the auction, speaking on condition of anonymity because they were not authorized to discuss it publicly, confirmed that it took place despite last-minute speculation it might be canceled.
Bear Stearns had hoped its rivals who invested in the funds — including JPMorgan Chase & Co., Deutsche Bank, and dozens of other creditors — would allow it to put together a rescue plan. So far, only JPMorgan and Goldman Sachs Group Inc. have agreed to unwind positions without selling the assets on the open market, a person familiar with the negotiations confirmed.
JPMorgan canceled its own auction to sell about $300 million (€223.43 million) worth of assets that was planned for Wednesday afternoon. This has shifted most of the attention to Merrill Lynch, which was said to have found great interest from investors.
Related Articles
