The Wayback Machine - https://web.archive.org/all/20060827122051/http://www.investment-service.net:80/investment/30.html
About Merrill Lynch to branch out in India.  
Home Investment Management Investment Bank Foreign Investment Investment Funds Investment Company Investment Services Investment Industry

news about UPDATE Merrill Lynch To Pay $500 Mln To Expand In India

Top Rank of

  1. IXIS Corporate & In ...
  2. UPDATE Merrill Lync ...
  3. HSBC: Investment Ba ...
  4. Northumbrian Profit ...
  5. FOREX-Dollar Gains ...
  6. Top Investment Bank ...
  7. UPDATE: Credit Suis ...
  8. Gazprombank To Sell ...
  9. Senior C++ Develope ...
  10. Deutsche Bank Agree ...

Latest Update Of

All Rank Articles

  1. Ligand Pharmaceutic ...
  2. Bajaj Auto Finance ...
  3. Rob McEwen To Purch ...
  4. HR Manager - Invest ...
  5. PowerShares Capital ...
  6. $500M Life Science ...
  7. IXIS Corporate & In ...
  8. Gael Partners LLC A ...
  9. AOL Founder Case Sa ...
  10. Investment Management

UPDATE Merrill Lynch To Pay $500 Mln To Expand In India

2005/12/07 (NEW YORK)

UPDATE 1-Merrill Lynch To Pay $500 Mln To Expand In India

U.S. investment bank Merrill Lynch (MER.N: Quote, Profile, Research) said on Wednesday it would boost its 40 percent stake in an Indian joint venture to 90 percent for about $500 million, buying the extra ownership from the local co-founder.

Merrill Lynch said the increased ownership of Indian investment bank DSP Merrill Lynch would enable the Wall Street firm to build its presence as one of the leading securities firms in India.

Hemendra Kothari, who co-founded the bank, will continue as chairman and take on added responsibility as a vice chairman of Merrill Lynch International, supporting its growth plans globally and helping Indian companies expand internationally. Merrill Lynch's relationship with DSP began in the 1980s and grew into a joint venture in 1995. The business will continue to operate under the DSP Merrill Lynch name.

investment bankAs part of the deal, DSPML Fund Managers, a wholly-owned asset management arm of DSP Merrill Lynch, will continue to be operated as a venture jointly owned by DSP Merrill Lynch with 40 percent and Kothari and related entities with 60 percent.

Merrill Lynch said it would make an offer for the publicly traded shares of DSPML and will make an application for delisting from the Bombay Stock Exchange.

The deal, which is expected to close in the first half of 2006 subject to various regulatory approvals, comes at a time of increased merger and acquisition activity in India and a boom in the country's equity markets. Investment banks are stepping up the pace in India, where the economy is expected to grow 7.5 percent in the year to March 2006 and the stock market has hit record highs recently on the back of more than $8.8 billion in foreign fund investment (by Investment banks). Citigroup (C.N: Quote, Profile, Research) has said it is keen to expand in India.

J.P. Morgan Chase & Co. (JPM.N: Quote, Profile, Research) said on Monday it would double its staff in India and plans to hire 4,500 graduates over the next two years as it moves one-third of its investment banking back office and support staff offshore by the end of 2007.

UPDATE 2-Merrill Lynch to pay $500 mln to expand in India

Merrill Lynch (MER.N: Quote, Profile, Research) said on Wednesday it would pay about $500 million to boost its 40 percent stake in an Indian joint venture to 90 percent as international banks seek to expand in the fast-growing market.

Merrill Lynch said the increased stake in investment bank and wealth management company DSP Merrill Lynch -- its main vehicle in India -- would enable it to build its presence as one of the leading securities firms in India, where the equity markets and economy are steaming ahead.

"As a result of this change we will be able to accelerate our plans for growth in this robust market," said Merrill Lynch Chief Executive and Chairman Stan O'Neal in a statement.

Merrill Lynch is buying at least part of this stake from local co-founder Hemendra Kothari, but did not give a breakdown on the proposed purchase or say what slice Kothari would keep of the firm which has about 400 employees.

Kothari will continue as chairman but give up management of the firm. He will also become vice chairman of Merrill Lynch International, supporting its growth plans globally and helping Indian companies expand internationally.

As part of the deal, DSPML Fund Managers, a wholly-owned asset management arm of DSP Merrill Lynch, will continue to be operated as a venture jointly owned by DSP Merrill Lynch with 40 percent and Kothari and related entities with 60 percent.

Merrill Lynch said it would make an offer for the publicly traded shares of DSPML and will make an application for delisting from the Bombay Stock Exchange. Merrill Lynch's relationship with DSP began in the 1980s and grew into a joint venture in 1995. The business will continue to operate under the DSP Merrill Lynch name. The deal, which is expected to close in the first half of 2006 subject to various regulatory approvals, comes at a time of increased merger and acquisition activity in India and a boom in the country's equity markets.

Investment banks are stepping up the pace in India, where the economy is expected to grow 7.5 percent in the year to March 2006 and the stock market has hit record highs recently due to more than $8.8 billion in foreign fund investment.

Need more info about investment bank, please visit Reuters.

bottom

Home | Investment Management | Investment Bank | Foreign Investment | Investment Funds | Investment Company | Investment Services | Investment Industry

Copyright © 2005 Investment Service. All Rights Reserved.