BlackRock said it plans to fund the repurchase through available cash and a total of $2bn of commercial paper, medium-term and long-term debt.
BlackRock also said that shares will be retired following the closure of the transaction, which is expected to take place on or about 1 June 2011, and will be will be immediately accretive to earnings per share.
BlackRock added that this share repurchase transaction is outside the the company’s existing 5.1 million common share repurchase authorization.
BlackRock chairman and CEO Laurence Fink said that Tom Montag, president of Bank of America’s global banking and markets group, will continue to serve on the board, underscoring the importance of, and commitment to, its partnership.
"We look forward to a long and mutually beneficial relationship with Bank of America Merrill Lynch," Fink said.
Bank of America acquired the 34% stake in BlackRock in 2009, when it took over Merrill Lynch & Co. and since then it has been gradually reducing its holdings.
