Wachovia Blasts Merrill (MER) For Sale of Bloomberg, Blackrock Stakes: "One of Few Positives Of MER Story"

Wachovia agrees that Merrill Lynch (MER) will take a $5 billion writedown in Q2 and slashes estimates accordingly.

More strikingly, Wachovia also trashed Merrill’s propose sale of its stakes in Bloomberg and Blackrock, suggest that these positions were “one of the few remaining positive elements of the MER story.”

Merrill has taken $21 billion in writedowns so far and traded below $30 yesterday for the first time since 1998.

Wachovia cuts Merrill’s Q2 EPS estimate from $0.63 to -$2.16 and FY2008 estimate from $0.15 to -$3.11.

See Also:

Merrill Moving Closer To Bloomberg, Blackrock Deals

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.