BlackRock Buys 5% Stake In Societe Generale - ValueWalk Premium

BlackRock Buys 5% Stake In Societe Generale

BlackRock, Inc. (NYSE:BLK), the world’s largest asset manager,has purchased a 5% stake of French bank Societe Generale SA (PINK:SCGLY) (EPA:GLE), French market regulator AMF said on Friday.

Reuters reported that the disclosure was made after BlackRock’s holding rose above the 5 % threshold, the asset manager now has a 5.002 percent stake in Societe Generale SA (PINK:SCGLY) (EPA:GLE) on behalf of its clients. The asset manager also acquired a 4.48 percent of voting rights in the group, according to AMF filing today.

BlackRock Buys 5% Stake In Societe Generale

According to sources, BlackRock’s stake was acquired on and off the market many times in the past. However, disclosure of the rise had to be made now as Blackrock crossed the threshold of 5% at which point disclosures are mandatory.

Blackrock would not comment on the transaction stating that the company never shares any remarks on individual company holdings.

BlackRock, Inc. (NYSE:BLK) reached an intraday high,  closing down 0.4% at $235.99 on Wednesday. The stock had covered up two large gaps  ever since the asset manager broke out of its ascending channel in the beginning of the year.

Earlier this month, the asset manager announced its fourth-quarter profit, which jumped  24% as the world’s largest money manager recorded double-digit revenue growth, helped by higher assets under management.

Total AUM grew 3% q/q to $3.8T and long-term AUM grew 3% q/q to $3.5T. Net LT AUM organic growth was +5.5% driven by $34.5B of iShares inflows. Operating margins (adjusted) rose 190 bps q/q to 42.6% (a 3-year high) and positive operating leverage was +320 bps q/q and +590 bps y/y.

BLK generated ~$3B of cash during the year and returned $2B of it to shareholders in 2012. In 4Q12, BLK bought back 868.5K stock, increased the authorized share repurchase program by 7.5M, and raised the quarterly dividend 12% q/q to $1.68 with a yield of almost 3%.

BlackRock, Inc. (NYSE:BLK) is an American multinational investment management corporation and the biggest provider of exchange-traded funds in the U.S. As the world’s largest asset manager headquartered in New York City, BlackRock provides investment, advisory, and risk management solutions.


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