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Merrill Lynch will sell a controlling stake in Financial Data Services Inc, an administrative services business, for about $3.5 billion, but will hold on to its piece of BlackRock Inc.
The New York-based firm said in its quarterly earnings release late Thursday that it is in talks to sell a controlling stake of the firm, which is currently a wholly owned-subsidiary of the bank.
FDS provides administrative functions for mutual funds, retail banking products and other services within the bank's Global Wealth Management unit.
Merrill Lynch will provide "a significant part" of the debt financing for FDS, chief executive John Thain said during a conference call.
Merrill also sold its 20 percent stake in Bloomberg LP for $4.5 billion to Bloomberg Inc.
Thain, in reply to a question from an analyst, said that the firm would hold on to its stake in investment management firm BlackRock Inc.
"Right now we believe that we are in a very comfortable spot in terms of our capital," Thain said.
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