BlackRock may replace Merrill in DSPML

DSPML Fund Managers, a 60:40 joint venture between Hemendra Kothari and Merrill Lynch, is expected to witness a change of promoters, with the latter nearing a deal to sell its asset management division to BlackRock, a US-based money manager.

According to international media reports, Merrill Lynch is close to acquiring a 49 per cent stake in BlackRock. Valued at $8 billion, the deal will create a firm with $1 trillion of assets under management, the most of any publicly traded company. In return, BlackRock will assume Merrill Lynch's asset management business.

Sources familiar with the development said BlackRock, after the deal materialised, was expected to take over Merrill Lynch's 40 per cent stake in DSPML Fund Managers, as part of their agreement.

It will be the second instance of a change of promoter of DSPML Fund Managers within a short period of time.

Only two months ago, Merrill Lynch had agreed to divest its 40 per cent stake in the company to Hemendra Kothari and his associates for $25 million.

The sources added that Hemendra Kothari and his associates would continue to hold 60 per cent. When contacted, Hemendra Kothai declined to comment.

Sources close to DSPML Fund Managers said BlackRock's entry into the company would have no material impact.