Merrill to raise $8.5 bln selling new common stock

[MoneyGuy]

SAN FRANCISCO (MarketWatch) -- Merrill Lynch & Co. said late Monday that it plans to raise $8.5 billion selling new common stock as the brokerage firm tries to bolster its capital position. Singapore's Temasek Holdings has agreed to buy $3.4 billion of the new shares, Merrill added. The firm also said it sold a big chunk of its U.S. super senior asset-backed security collateralized debt obligations, cutting its exposure in this area by $11.1 billion compared to the end of June. Merrill shares fell 5.7% to $22.94 during after-hours trading on Monday.

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