Tumasek lost over USD1billion on sale of Bank of America Shares

[pegasus]

May 15, 2009, 11.30 am (Singapore time)

Update: Temasek sold BOA shares

* Shares offloaded by end-March
* BOA shares sold at between US$2.53 and US$14.81
* May have lost over US$1b: Reuters calculations
* Had converted 13.7% stake in Merrill Lynch into BOA

SINGAPORE - Singapore state investor Temasek sold its entire stake in Bank of America (BOA) during the first quarter of this year, taking a hit on its investment as it refocuses on emerging markets.

'We have divested our shares in Bank of America,' a Temasek spokesman said.

Temasek held 188.8 million BOA shares after it said in early January it had converted its 13.7 per cent stake in Merrill Lynch & Co into BOA stock.

At that time, its stake in BOA was worth around US$2.6 billion, or US$13.7 a share.

A source briefed on the deal told Reuters the shares were sold for between US$2.53 and US$14.81 during the first quarter of this year.

Assuming an average price of US$8.67, Temasek may have suffered a loss of over US$1 billion, according to Reuters calculations. Temasek declined to provide the average selling price of its BOA shares. -- REUTERS

 

[Merl Haggard]

Singapore’s Temasek Sells Stake in Bank of America

By Chen Shiyin

May 15 (Bloomberg) -- 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 U.S. 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 U.S. 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 Organization 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.

___________________________________________________________________________



Now that Ho Jinx has sold off BOA shares, I think it's an opportune time to invest in BOA.

 

[singveld]

i remember someone in this forum who call it long term investment.

i think he is still active in this forum, can he come up and say a few words.

 

[Vendetta]

i remember someone in this forum who call it long term investment.

i think he is still active in this forum, can he come up and say a few words.

I don't think he is free to come out to clarify, his cock is stuck inside his mouth liao for saying 'long term investment'.

 

[Merl Haggard]

I don't think he is free to come out to clarify, his cock is stuck inside his mouth liao for saying 'long term investment'.

That blardy old scum said it's for long term investment.....blardy lied through his teeth!

Time to invest in BOA shares.

 

[jim007jimmyboy]

MM Lee explains Singapore’s long-term investment horizon

February 7, 2009 by Daniel Ling
Filed under News

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Minister Mentor Lee Kuan Yew


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MM Lee explains Singapore’s long-term investment horizon

SINGAPORE : Singapore’s Minister Mentor Lee Kuan Yew has said the country has over S$100 billion in reserves today, unlike the 1960s when the country first gained independence.

But the Republic has not relied on borrowing to fund its investments.

Mr Lee said: “Within three to four years, the economy must recover.”

The minister mentor gave his forecast on the economy to 1,500 of his Tanjong Pagar constituents at a Lunar New Year dinner on Friday.

He said that the Singapore government turned many of its stocks and shares into cash early last year before prices went down. That was why the country was able to invest in the American banks.

Mr Lee explained: “When we invest, we are investing for 10, 15, 20 years. You may look as if you are making a big loss today, but you have not borrowed money to invest. You will ride the storm, the company recovers, your shares go up.”

But he said that Singapore is not a master of its own economy.

He said: “Of all the economies in the world, we have the highest percentage of external trade - three and a quarter times our GDP. No other country has got that size of external trade. So when the external trade shrinks, remember it is going to hurt us.”

Still, Mr Lee is confident Singapore will recover from the current downturn, due to various reasons like good labour relations and pro-investment climate in the country. But he said that giving handouts will not help boost spending and the economy.

“So those MPs who say, ‘Give S$300 to every citizen and we will boost the retailers’, they just do not understand the bigger picture. You give S$300 like that and it is gone in a shot, and all the things that they will buy, three-quarters of it are imported,” he said.

Mr Lee added that, with luck, America’s economy may recover by the end of this year or early 2010. He said the outcome of President Barack Obama’s economic plans is expected in nine months. And by then, the Singapore government may have to update its record S$20.6 billion national budget.

Source: CNA/ms

 

[TeeKee]

Someone need to resign!!

And it's not Me!! LOL...

 

[abeltcb]

By COSTAS PARIS

SINGAPORE -- Singapore's Temasek Holdings Pte Ltd. sold its entire 3.8% stake in Bank of America Corp. between January and March this year, swelling its losses from soured investments by about $4.6 billion.

Temasek, a state-owned investment company, disclosed the stake sale in a quarterly report filed with the U.S. Securities and Exchange Commission.

A Temasek spokeswoman confirmed the Bank of America divestment, but didn't give any other details.

According to people familiar with the situation, Temasek sold the Bank of America shares for an average $7 a share, netting $1.3 billion, but losing an estimated $4.6 billion on the investment.

May 15, 2009, 11.30 am (Singapore time)

Update: Temasek sold BOA shares

* Shares offloaded by end-March
* BOA shares sold at between US$2.53 and US$14.81
* May have lost over US$1b: Reuters calculations
* Had converted 13.7% stake in Merrill Lynch into BOA

SINGAPORE - Singapore state investor Temasek sold its entire stake in Bank of America (BOA) during the first quarter of this year, taking a hit on its investment as it refocuses on emerging markets.

'We have divested our shares in Bank of America,' a Temasek spokesman said.

Temasek held 188.8 million BOA shares after it said in early January it had converted its 13.7 per cent stake in Merrill Lynch & Co into BOA stock.

At that time, its stake in BOA was worth around US$2.6 billion, or US$13.7 a share.

A source briefed on the deal told Reuters the shares were sold for between US$2.53 and US$14.81 during the first quarter of this year.

Assuming an average price of US$8.67, Temasek may have suffered a loss of over US$1 billion, according to Reuters calculations. Temasek declined to provide the average selling price of its BOA shares. -- REUTERS

 

[myfoot123]

When Temasek did not wish to comment. The answer is clearer, they lost even more than USD1billion. With that Ho Ching got her golden award on labour day and LHL/LKY are pleased with that arrangement.

 

[jim007jimmyboy]

When Temasek did not wish to comment. The answer is clearer, they lost even more than USD1billion. With that Ho Ching got her golden award on labour day and LHL/LKY are pleased with that arrangement.

make me sic to my dickhead

 

[cowbehcowbu]

brother ..it was Danabalan who said 30 years long term investment.

 

[cleareyes]

i remember someone in this forum who call it long term investment.

i think he is still active in this forum, can he come up and say a few words.

If you had looked at it from another point of view, buying into BOA is a long term investment whereas temasek could have a stake in any form in the US banking market.

No one would expect the 2008 crisis to even happen and would turn out to be that bad and many US Banks are dropping in value.

Selling now and incurring a US1 Billion lost is perhaps out of panic selling. I would choose to hold on as recovery could bring in better returns.

 

[cleareyes]

When Temasek did not wish to comment. The answer is clearer, they lost even more than USD1billion. With that Ho Ching got her golden award on labour day and LHL/LKY are pleased with that arrangement.

Sad, but when you have made such losses, no one would be able to or dare to say anything as yet.

 

[rodent2005]

i remember someone in this forum who call it long term investment.

i think he is still active in this forum, can he come up and say a few words.

Now he will say Ho Ching is courageous to cut losses!!! If not the losses will be worse!!! So more bonuses for Ho Ching!!!!

 

[johnny333]

Selling now and incurring a US1 Billion lost is perhaps out of panic selling. I would choose to hold on as recovery could bring in better returns.

Could be that they couldn't wait for the turnaround as they need the money real bad. Its that bad

 

[angie II]

Sad, but when you have made such losses, no one would be able to or dare to say anything as yet.

"Its only paper loss for now" * ahem *
​

 

[jim007jimmyboy]

damn sic the things they do and get away with!!!!!!!!!!!!


Confirm the family will really go down in history books!!!!!!!!!!!!!!!!

 

[dupersuper]

and remember, a few poor people died penny-less,electricity-less,water-less in their hdb flat while hdb went to reclaim the flat for FT due to late payment.

 

[makapaaa]

No more long-term investment thingy?

 

[cowbehcowbu]

Bros.buy high and sell low...got it.HA HA HA