Sunday, September 14, 2008

Just in -- MERRILL AGREES TO SELL ITSELF TO BANK OF AMERICA, WSJ REPORTS

"In a rushed bid to ride out the storm sweeping American finance, 94-year-old Merrill Lynch & Co. agreed late Sunday to sell itself to Bank of America Corp. for roughly $44 billion.
The deal, which was being worked out in 48 hours of frenetic negotiating, could instantly reshape the U.S. banking landscape, making the nation's prime behemoth even bigger. The boards of the two companies approved the deal Sunday evening, according to people familiar with the matter.
Driven by Chief Executive Kenneth Lewis, Bank of America has already made dozens of acquisitions large and small, including the purchase of ailing mortgage lender Countrywide Financial Corp. earlier this year. In adding Merrill Lynch, it would control the nation's largest force of stock brokers as well as a well-regarded investment bank.
A combination would create a bank of vast reach, involved in nearly every nook and cranny of the financial system, from credit cards and auto loans to bond and stock underwriting, merger advice and wealth management.
It would also show how the credit crisis has created opportunities for financially sound buyers. At $44 billion, or roughly $29 a share, Merrill would be sold at about two-thirds of its value of one year ago, and half its all-time peak value of early 2007. Merrill shares changed hands at $17.05 each on Friday, after falling sharply in the wake of Lehman's looming demise."

6 comments:

casery warden said...

I think its about time we all realised that we're in a depression...

Anonymous said...

well said.

this is only chapter 2 of the modern day great depression

Anonymous said...

All 401(k) investors: Strictly as an investor, there is no doubt today's news is awful. It is hurting the markets. But if you have a long-term plan for the next 15 to 20-plus years, it is really more of a buying opportunity than anything. I don't want to say it's a bottom, but it is certainly starting to feel like a bottom. For the 401(k) investor, this is a good time to rebalance and stick with it.

Casey Warden said...

yet another bottom today...I do agree, however, its time to double up or go home...too many companies are trading below their earnings per share and its only a matter of time...or the companies get bought out by firms and fold the public ones at these prices...look at Merril Lynch...

Anonymous said...

expectations for a quick end to the crisis are fading fast. I think it's going to last a lot longer than perhaps we would have ever anticipated...

Anonymous said...

here we go again. first lehman, merrill and now goldman and morgan