Just how big a disaster was Chartered Semi for Merrill?

With the failure of the Chartered Semiconductor rights issue, Merrill Lynch has accidentally diversified into the semiconductor industry. How much of a disaster is this for Merrill?

Investment banking, asset management and now semiconductors. Merrill Lynch's failed rights issue for Chartered Semiconductor, has seen it add a new business line.

Around 393 million shares in Chartered Semi were unsubscribed in its rights issue, and the company declared this meant the underwriter was left with a 15.7% stake.

Merrill Lynch hard underwrote the offering at S$1 a share and so has paid S$393 million for the stock. It has since traded down to S$0.86 meaning the value of...

To continue reading, please login or register for free

Click for more on: disaster | chartered | semi | merrill

Print Edition

FinanceAsia Print Edition


  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...