BlackRock will repurchase the remaining stake of the firm held by Bank of America (BofA) for $2.5 billion, The Wall Street Journal reports. As per the deal, the money manager will buy back BofA’s nearly 13.6 million series B convertible preferred shares for about $187.65.
BlackRock seeks to fund the repurchase with available cash and a total of $2 billion of commercial paper, medium-term and long-term debt. BofA bought the stake with its 2009 acquisition of Merrill Lynch. BofA’s investment-bank head, Thomas Montag, will remain on BlackRock’s board even after the deal.
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