Merrill and CBA in dispute over failed placement

UBS completes the $1.1 billion share sale after CBA sacks Merrill Lynch on the basis that it failed to tell potential investors about new financial information.
Commonwealth Bank of Australia CBA and Merrill Lynch have become entwined in a public dispute over a failed share sale, which has sparked massive interest in the Australian media and is almost certain to lead to a wider debate about selective disclosures and what role investment banks should play on placements. Sources say a formal investigation by the regulators is also likely.

In a series of highly unusual events, the Australian bank cancelled a share placement arranged by Merrill after investors complained that they had not been told about an expected rise in CBAÆs bad debts. It also sacked and publically rebuked Merrill for not fulfilling its commitments, and then turned around and mandated...
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