Dutch pension fund ABP, the world's third largest, has sued Bank of America (BofA), saying it withheld vital information in 2008 about its Merrill Lynch takeover that would have led ABP to reject the deal.
"Prior to the merger date, BofA appear to have had knowledge of record quarterly losses Merrill was facing. The losses were expected to exceed $15 billion (Dh55bn)," ABP's Assets Manager APG said yesterday.
BofA was not immediately available to comment. The US Securities and Exchange Commission sued BofA for a second time in January over its takeover of Merrill, accusing the bank of failing to disclose huge losses at Merrill before shareholders voted on the merger.
APG said BofA also kept information from shareholders about $5.8bn in bonuses to be paid to Merrill employees.