(The Wall Street Journal) -- Moving to bolster its waning capital amid writedowns of mortgage-related assets, Merrill Lynch said Monday it will sell up to $6.2bn (€4.3bn) of newly issued common stock at a discount to two investors and divest its middle-market commercial-finance business to a unit of General Electric.

Temasek Holdings, an investment company owned by the government of Singapore, is buying $4.4bn of Merrill common stock with an option to buy $600m more by March 28, while money manager Davis Selected Advisors will buy $1.2bn of stock. Temasek would own 9.9% of Merrill if it exercises the option, keeping it within limits tacitly approved by government and regulatory officials.