This July, if you see former Big Apple mayor Mike Bloomberg sweating, it may not because of the usual summer heat.
The New York Post reports that a secretive slice of the $4.4bn deal that sold Merrill Lynch’s 20% stake in the former mayor’s Bloomberg LP back to the data firm in 2008 — that bars the brokerage firm from cutting back on the number of $21,000-a-year Bloomberg terminals — is set to expire in about six months, The newspaper has learned.
The end of the eight-year lock-up opens the door for Bank of America, which bought Merrill several months after the Bloomberg deal was announced, to start cutting back on its $420-million-a-year Bloomberg terminal rental tab.
Like other banks, BofA is under pressure to cut costs in a time of volatile markets.
The bank, led by CEO Brian Moynihan, is weighing a move to pare back the number of Bloomberg terminals by as much as 5,000, or 25$, sources said.
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