Wednesday, June 20, 2007

Bear Stearns's Rescue of Hedge Funds Is Jeopardized by Merrill Bond Sale

(Bloomberg) -- Bear Stearns Cos.'s attempt to rescue
its money-losing hedge funds may falter after creditor Merrill
Lynch & Co. decided to seize and sell $800 million of bonds held
as collateral for loans to the funds.

Merrill Lynch distributed a list of the securities to
investors late yesterday, according to people with knowledge of
the offering. New York-based Merrill Lynch postponed a smaller
auction two days ago while Bear Stearns worked on a plan to bail
out the hedge funds.


Read more at Bloomberg Bonds News

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