Merrill to acquire stake in Japan bank

Merrill Lynch & Co. Inc. today announced that it will buy a nearly $3 billion stake in Resona Holdings Inc., Japan's fourth-largest bank, according to published reports. The infusion will enable Resona to raise cash to repay monies owed to the public from an earlier bailout by Japan, according to reports. The New York-based firm will hold the shares for two years and then may transfer the stock to a special purpose company to be set up later, said reports. ``Resona Holdings is one of our premier investment banking clients,'' said Merrill in a statement today. ``This capital raising allows Resona to send a strong message to its global investors that the bank is taking concrete, substantial steps to repay public debt.''