Singapore state investor Temasek Holdings said it converted its 13.7 percent stake in Merrill Lynch & Co Inc into Bank of America Corp stock, in a move that will reduce the value of its investment in Merrill by more than $2 billion.
In a filing with the U.S. Securities and Exchange Commission, the company said it received 0.8595 of Bank of America common stock for each Merrill share.
After the conversion, Temasek holds about 189 million shares of Bank of America.
Bank of America shares closed at $13.71 Wednesday on the New York Stock Exchange, bringing the stake's value to $2.59 billion. Temasek now holds a stake of about 3.8 percent in Bank of America, which had 5.02 billion shares outstanding as of Oct. 31.
On Jan. 1, Bank of America completed its purchase of Merrill Lynch, creating the largest U.S. bank.
(Reporting by Amiteshwar Singh in Bangalore; Editing by Pratish Narayanan)