BlackRock (BLK) Alters Voting Rights
More News related to BLK
- JMP Starts Investment Service Stocks: BLK, FII at Outperform, LM, BEN, JNS, TROW at Market Perform
- BlackRock Declares Quarterly Dividend of 78 Cents on Common Stock
- Central Banks to be Largest Purchasers of Gold, Blackrock (BLK) Says
- Anthracite Capital Announces Addition to Board of Directors
- Anthracite Capital Reports GAAP Loss of $(0.51) Per Share and Operating Earnings of $0.03 Per Share
More News related to MER
- NY AG Cuomo Sends Letter To Regulators On BofA/Merrill; Officials Threatened To Replace Lewis and Board
- Merrill Lynch: Bankers Deserve $10 Million
- NY AG Cuomo Said Merrill "Secretly and Prematurely" Awarded $3.5B In Bonuses Before Merger
- U.S. Close To Giving New Aid To Bank of America (BAC)
- U.S. May Extend More Aid to BofA (BAC) - WSJ
More News related to Corporate News
- Hydrogenics Resumes Trading Under NASDAQ Symbol "HYGS"
- Varian Medical (VAR) to Highlight its New Range of Detectors at Annual RSNA Meeting in Chicago
- Manulife (MFC) Confirms No Exposure to Dubai World
- Activision's (ATVI) Call of Duty Amasses $3 Billion in Global Sales
- Seiko Epson to Transfer Sales Function of Small and Medium-Sized TFT LCD Business to Sony (SNE)
BlackRock (NYSE: BLK) is changing the distribution of voting rights among its largest shareholders in a complicated arrangement that involves exchanges of common and preferred shares.
As a result of making the adjustment, Merrill Lynch (NYSE: MER) will still retain its 49.5% stake in BlackRock but its voting rights will be slashed to 4.9%. Simultaneously, PNC Financial Services will exercise 47% of the voting rights, while retaining 33% of the ownership.
The adjustment in voting rights comes as a result of BlackRock’s right to lower Merrill’s voting stake in the event of a change of control, a right that BlackRock demanded after its relationship with Merrill was extended for 5 years in July.
The FT reported that the agreement followed upon tensions between the two sides after John Thain publicly taled about selling Merrill’s stake in BlackRock, which led to a drop in BlackRock’s share price.
For PNC, the exchange offer also provides for the regional bank to reduce quarterly earnings volatility associated with its stake in BlackRock. PNC issues stock to BlackRock employees as part of BlackRock’s compensation scheme which requires PNC to mark its stake in BlackRock to market on a quarterly basis.
By exchanging common stock in BlackRock for preferred stock, PNC hopes to reduce the impact of this accounting requirement on its earnings.
Related Categories
Corporate NewsStocks Mentioned
-9.16
+0.00Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
