Strategy
BlackRock Extends Protection if Change of Control at Merrill
US asset manager BlackRock has revised the agreements it has with 49.8 per cent shareholder Merrill Lynch that protect BlackRock's interests if Merrill's structure changes substantially.
In a filing with the Securities and Exchange Commission,
BlackRock said the new agreement has extended the definition of
change of control at Merrill Lynch to include the sale of
two-thirds or more of Merrill's global private client business,
through which it distributes BlackRock's funds.
If a change of control does take place at Merrill, a global
distribution agreement between the two firms will now be extended
for five years from the date such change occurs. The current
agreement, due to end in 2009, has been extended to 16 July
2013.
The revised agreement also makes it easier for Merrill to start
or buy hedge funds and other alternative investments.
