Merrill Aims to Raise $8.5B, Prune Bad Debt

Brokerage announces surprise stock sale, $5.7B writedown
By Will McCahill,  Newser Staff
Posted Jul 28, 2008 7:51 PM CDT
Merrill Aims to Raise $8.5B, Prune Bad Debt
Merrill Lynch is selling mortgage debt valued at $30.6 billion for $6.7 billion, or about 22 cents on the dollar.   (AP Photo)

Merrill Lynch announced a surprise stock offering today aimed at raising $8.5 billion for the brokerage, strapped by the mortgage and credit crises, the Financial Times reports. It also said it was writing down a further $5.7 billion in bad debt, and is selling collateralized debt obligations nominally worth $30.6 billion for $6.7 billion. (Read more Merrill Lynch stories.)

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