NJ pensions take big stakes in Citi and Merrill

NEW YORK Jan 15 (Reuters) - New Jersey will invest $400 million in Citigroup and $300 million in Merrill Lynch & Co. through its pension funds because it decided the financial sector now offers attractive long-term opportunities, a state official said Tuesday.

New Jersey, which is buying convertible preferred shares in both companies, joins a list of other big investors taking stakes in two banks that have suffered big losses related to subprime mortgages.

A spokeswoman was not immediately available to say whether New Jersey would make more such investments.

(Reporting by Joan Gralla, Editing by Chizu Nomiyama)