Update: Temasek sold BOA shares
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* Shares offloaded by end-March
* BOA shares sold at between US$2.53 and US$14.81
* May have lost over US$1b: Reuters calculations
* Had converted 13.7% stake in Merrill Lynch into BOA
SINGAPORE - Singapore state investor Temasek sold its entire stake in Bank of America (BOA) during the first quarter of this year, taking a hit on its investment as it refocuses on emerging markets.
'We have divested our shares in Bank of America,' a Temasek spokesman said.
Temasek held 188.8 million BOA shares after it said in early January it had converted its 13.7 per cent stake in Merrill Lynch & Co into BOA stock.
At that time, its stake in BOA was worth around US$2.6 billion, or US$13.7 a share.
A source briefed on the deal told Reuters the shares were sold for between US$2.53 and US$14.81 during the first quarter of this year.
Assuming an average price of US$8.67, Temasek may have suffered a loss of over US$1 billion, according to Reuters calculations. Temasek declined to provide the average selling price of its BOA shares. -- REUTERS****************************************************
This is from me:
A best case scenario would be most are sold at US$14.81, a profit of about US$1 per share.Since Temasek declined to comment... hmmm
Then again hor, I thought Temasek invests for long term???
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So if temasek sold all the share for BOA, is it implying that there is not future in this bank? And how about citibank?
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Then who can query PM's wife decision?
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If you really want to find out a more accurate figure, you have to dig up the total investment in Merrill Lynch, deduct that against the average price of BoA, which is US$8.67.
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Assuming an average price of US$8.67, Temasek may have suffered a loss of over US$1 billion, according to Reuters calculations. Temasek declined to provide the average selling price of its BOA shares.
Minister Mentor Lee Kuan Yew has defended the impending salary increase for ministers and told its critics to have “a sense of proportion” when debating the issue.
Lee said that for the average family earning S$1,500 or S$3,000 a month, the proposed salary increase might be an astronomical figure.
“But for people in government like me, having to deal with these sums of money which we have accumulated through the sweat of our brow over the last 40 years, you have to pay the market rate,” he told the Singapore media covering his visit to Australia published in The Straits Times today.
Otherwise, he said, the top talent in public sector would join the private sector.
“And then you’ve got an incompetent man and you’ve lost money, by the billions. So get a sense of proportion”.
Singapore cabinet ministers are currently drawing S$1.2 million salary a year but Prime Minister Lee Hsien Loong said recently that the amount was below the benchmark of S$2.2 million, and should be increased in order for the public sector to attract and retain talent.
Minister Mentor Lee described as “absurd” for Singaporeans to quarrel over the amount the ministers should be paid. “You know, the cure for all this talk is really a good dose of incompetent government,” he said.
The total cost to pay ministers and other office holders is now at S$46 million a year, which Lee said, amounted to about 0.13 per cent of the government’s total expenditure.
“We are quarrelling about whether we should pay them S$46 million or S$36 million, or better still S$26 million. So you save S$20 million and jeopardise an economy of S$210 billion? What are we talking about?” said Lee.
The proposed salary increase has attracted debate among Singaporeans who are against the move.
But Lee told them: “I say you have no sense of proportion; you don’t know what life is about. And just think, what would your apartment be worth with a poor government and the economy down?”
Asked on his salary, Lee, said he earned S$2.7 million a year as Minister Mentor.
“A top lawyer, which I could easily have become, today earns S$4 million. And he doesn’t have to carry this responsibility. All he’s got to do is advise his client. Win or lose, that’s the client’s loss or gain.”
Temasek may have suffered a loss of over US$1 billion, according to Reuters calculations.
So is this the signal to increase minister pay again?
Don't increase pay, cannot attract talent, lose more money.
I propose increase minister pay to 5 million annual pay.
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Actually the reporter was wrong in his estimation of Temasek's loss in the purchase of Merrill Lynch turned Bank of America purchase. The reporter's estimated loss was based on the conversion (the stake that Temasek got when Merrill Lynch was taken over by Bank of America). Temasek plough in US$ 6 billion for Merrill Lynch and it got US$ 2.6 billion for Bank of America. Where's the other US$ 3.4 billion?
The purchase of Merrill Lynch was for USD 4.4 billion, they made further purchases of Merrill Lynch on Feb 2008 and July 2008, all of which approximated to USD 6 billion.
188.8 million shares x US$8.67 (average price) = US$ 1.64 billion
This translates to a loss of US$ 4.36 billion for Temasek if you track back to Merrill Lynch purchase.
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Originally posted by Chew Bakar:
Then who can query PM's wife decision?
Excuse me, dun blame my aunty hor, she already relinquished her position, and now a new former NY top banker is at the helm of temasek. What do you want some more from her,...to apologise to all of you, the stakeholders and the shareholders. Come on men, nobody ask you to invest in temasek, if you really wants to invest in bank, why focus on US banks??? why not local and BOC?? people are making money out of asian banks, and you guys are concentrating on those ailing US bank??? You are wrong side of the game boys, and you should know why temasek is pulling out. Lost nevermind, but dun lose face by dying from stupidity.Let me tell u that from internal sources that i gathered, when the economy recover, china will be the next economy superpower, even the americans are investing in them, but the worrying part is the geo politics and social stability of China, she may just go havoc due to increasing disparity between the rich and poor.
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A top lawyer, which I could easily have become, today earns S$4 million.
And he doesn’t have to carry this responsibility. - Lee Kuan Yew
Singapore's GIC losses about $50 billion: sources
http://www.asiaone.com/Business/
So how GIC chairman Lee?
I think he better go and be lawyer and earn his 4 million.
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And then you’ve got an incompetent man and you’ve lost money, by the billions. So get a sense of proportion”.
A top lawyer, which I could easily have become, today earns S$4 million.
And he doesn’t have to carry this responsibility. - Lee Kuan Yew
Singapore's GIC losses about $50 billion: sources
Sian, listen to this bastard talk cock. -
aiya dun kpkb over these la ... how to calculate, the money also not urs. they always belongs to the government. Just dun vote for pay and pay if u dun like this.
NOW GET BACK TO WORK AND CONTINUE TO PAY CPF EVERYONE
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Just dun vote for pay and pay if u dun like this.
Walkover?
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Originally posted by Ah Chia:
Just dun vote for pay and pay if u dun like this.
Walkover?
Runover -
Originally posted by Ah Chia:
Singapore's GIC losses about $50 billion: sources
http://www.asiaone.com/Business/
So how GIC chairman Lee?
I think he better go and be lawyer and earn his 4 million.
If i can earn hundreds of billions over the past 40 years, i hv the right to reserve my losses of 50billions.You just go on your life, GIC losses is not going to affect you much, we will recuperate.
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Originally posted by angel7030:
Excuse me, dun blame my aunty hor, she already relinquished her position, and now a new former NY top banker is at the helm of temasek. What do you want some more from her,...to apologise to all of you, the stakeholders and the shareholders. Come on men, nobody ask you to invest in temasek, if you really wants to invest in bank, why focus on US banks??? why not local and BOC?? people are making money out of asian banks, and you guys are concentrating on those ailing US bank??? You are wrong side of the game boys, and you should know why temasek is pulling out. Lost nevermind, but dun lose face by dying from stupidity.Let me tell u that from internal sources that i gathered, when the economy recover, china will be the next economy superpower, even the americans are investing in them, but the worrying part is the geo politics and social stability of China, she may just go havoc due to increasing disparity between the rich and poor.
Har.. NY banker ah .. you sure or not ?
I thought he is some ceo of australia mining company ? Confused.
But NY banker also cham liao lah..
NY banker a lot of them become beggars leh...
But hor..if have to choose between NY banker vs CEO miner.. I prefer the miner lah.
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Yes, agreed, if you make hundreds of billions in your OWN business you have every right to lose everything. If you are accountable to shareholders which are you citizens, that's an entirely different issue. But then again, since when does PAP have to be accountable to her citizens.
Moreover, the hundreds of billions are made through monopoly businesses and IPO launches, through which citizens are made to pay inflated prices for usage, after deriving the profits from her citizens the PAP detaches itself from her citizens and say the profits belongs soley to PAP, it has nothing to do with the citizens. Food for thought, to whom does the profit belong to?
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Originally posted by jojobeach:
Har.. NY banker ah .. you sure or not ?
I thought he is some ceo of australia mining company ? Confused.
But NY banker also cham liao lah..
NY banker a lot of them become beggars leh...
But hor..if have to choose between NY banker vs CEO miner.. I prefer the miner lah.
CEO of australia mining company??? O my Gosh! no lah, i am sure this beggar is from america, cos beggar are hungry mah,very well, if you prefer a miner to slowly mine the so call hole, i won't argue about it, but i prefer a banker to bang hard on me, so we got to respect each other.
But if it is truly from Australia, i bet i will be the Board of Director of temasek
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Originally posted by angel7030:
CEO of australia mining company??? O my Gosh! no lah, i am sure this beggar is from america, cos beggar are hungry mah,very well, if you prefer a miner to slowly mine the so call hole, i won't argue about it, but i prefer a banker to bang hard on me, so we got to respect each other.
But if it is truly from Australia, i bet i will be the Board of Director of temasek
Go ahead, be a director of Temasek. I'll bet you will outdo your aunty Ho.
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Originally posted by Chew Bakar:
Go ahead, be a director of Temasek. I'll bet you will outdo your aunty Ho.
Dun always think that my aunty name is Ho Cheng mean very good for you all to cheng here and there, her name is Ho Ching ok, the only person alive in Singapore with a road under her name, she also get an award recently, so dun play play hor.But i still admire Admiral Cheng Ho more.
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"Temasek declined to reveal the average price it got for its 188.8 million shares, but preliminary estimates put the potential loss at a whopping US$4.26 billion."
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Well, they will tell you that the loss shouldn't have happened but it happened, so let move on.
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Don't tell me soon they will sell the citibank stake too.
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Strange investment strategy, when folks want to sell, they buy; when folks want to hold, they sell.
Maybe it's their contrarian investment strategy.
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Originally posted by deepak.c:
Strange investment strategy, when folks want to sell, they buy; when folks want to hold, they sell.
Maybe it's their contrarian investment strategy.
We commoners can never understand their complex investing strategies.
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We commoners can never understand their complex investing strategies.
I don't think that is it a good idea to study the workings of PAP regime.
Their logic is beyond us common folk.
For us common people, we eat mee siam without hum.
But with PAP people, who knows?