The group also includes Korean Investment Corp and clients of US money managers TPG-Axon Capital and T Rowe Price Associates Inc., Merrill said on Tuesday. The mandatory convertible securities carry a 9 per cent annual dividend and 17 per cent conversion premium. The investors won’t have a say in how Merrill is run.
Merrill is raising money after $8.4 billion of writedowns on US mortgage investments led to biggest loss in its 93-year history in the third quarter.

Merrill probably will post a loss of $3.23 billion on January 17, topping the record $2.24 billion shortfall reported in the third quarter, analysts estimate.  The firm may write down $15 billion related to US mortgage losses, almost twice its original forecast, the New York Times reported January 11, citing unidentified people briefed on the plan.
“We look forward to our relationship with Kuwait Investment Authority providing Merrill Lynch with additional opportunities to grow its presence there,” Merrill Chief Executive Officer John Thain said in a statement.