It is estimated that Merrill’s 20% stake in Bloomberg is approximately $5 billion. Even if Merrill is able to offload it back to the New York mayor’s company, it will be stuck with a huge tax bill. The historical cost listed on the balance sheet is only $28 million.

If investors are to believe John Thain’s pledge that Merrill Lynch will not need to raise any more equity, then asset sales must be in the offing. Merrill is set to report another big swathe of writedowns next Thursday as it presents second-quarter results. The bank’s 20 per cent stake in Bloomberg is rumoured to be on the block. How much might it fetch?

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