Though it has been confirmed to be incorrect now, Level13 shares his view on how one should always double check on the reports and not follow blindly. By: Level13 Before you come to the conclusion that Temasek has made a lousy investment decision which has resulted in losses, it seems like nobody can verify on the accuracy of this news. According to the Mutual Fund Facts website, they have sold off 50% of their stake. That means at the start, Temasek should own about 174 million shares. However, I am inclined to think that this piece of news is untrue. The numbers simply do not add up. I did a simple search online and found the following: On 3rd Jan 2008, in a 13G filing on Merrill Lynch, Temasek Holdings disclosed that they hold a 9.4% stake, or 91,666,666 shares, in the investment bank. In December, Merrill, hit with massive write-downs due to the submprime debacle, said they would raise up to $6.2 billion in a deal with Temasek Holdings and Davis Selected Advisors. Under the plan, Temasek Holdings was to invest $4.4 billion in Merrill Lynch common stock, with an option to purchase an additional $600 million of Merrill Lynch common stock by March 28, 2008. Under the deal, Temasek's ownership position will at all times be less than 10% of Merrill Lynch's outstanding shares. Temasek made the initial investment of $4.4 billion at $48 per share (91,666,666 shares). Temasek has an option to buy an additional 12,500,000 shares, also at $48. Currently, Merrill Lynch's share price is hovering at around US$34. So assuming Temasek exercises the option to increase its stake, the extra $600 million will net another 19 million shares. Taking into consideration that Temasek has bought an additional 12.5 million shares at US$48, the total amount of shares it is holding should be in the region of 123.5 million (92+19+12.5). How did Mutual Fund Facts website get 174 million??????? Never take news report at face value. Always double check. Source: Level13 Financial Ramblings