The board of Blackrock Inc. has withdrawn a proposal to merge certain municipal funds into other portfolios.Blackrock, a unit of Pittsburgh-based PNC Bank Corp., had sought to fold the Blackrock Municipal Target Trust, the Blackrock California Municipal 2008 Term Trust, the Blackrock New York Insured Municipal 2008 Term Trust, and the Blackrock Florida Insured Municipal 2008 Term Trust into other portfolios.

However, higher interest rates and stock price pressure on the market for municipal closed-end funds have reduced the potential benefits, the company said in a filing with the Securities and Exchange Commission.

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