Temasek Holdings Pte, a Singapore state-owned investment company that bought stakes in Merrill Lynch & Co. and Barclays Plc amid the global financial crisis, sold its stake in Bank of America Corp.
Temasek received shares in Bank of America after the biggest US bank by assets bought Merrill Lynch this year. The investment company had paid about $5.9 billion for a 14 percent stake in Merrill Lynch since December 2007, which was converted into Bank of America stock following the completion of the acquisition.
“We have divested our shares in Bank of America,” Temasek said in an e-mailed response to Bloomberg News queries. The company declined to say how much it sold the stake for or when the sale was conducted.
Temasek had 31 percent wiped from the value of its global portfolio in the eight months through November amid the slump in financial markets. The company had sold assets including power generators and Singapore Food Industries Ltd over the past year while increasing its investments in companies such as CapitaLand Ltd and DBS Group Holdings Ltd through rights offers.
A Form 13F filing to the US Securities and Exchange Commission indicates that Temasek no longer held shares in Bank of America or Merrill Lynch as of March 31.
Bank of America rose 2.7 percent to $11.31 in New York trading yesterday. The shares have tumbled 69 percent in the past year, outpacing the 36 percent decline in the Standard & Poor’s 500 Index.
Temasek will cut its holdings in the Organisation for Economic Cooperation and Development countries to 20 percent as it expands in Asia and emerging markets from Latin America to Africa, Chief Executive Officer Ho Ching said according to a speech posted on Temasek’s Web site yesterday.
The investment company had earlier said the more developed OECD countries will make up about a third of its investment portfolio.