Bank of America in Talks to Buy Merrill Lynch

[don]

http://dealbook.blogs.nytimes.com/20.../index.html?hp

"Bank of America is in advanced talks to buy Merrill Lynch for at least $38.25 billion in stock, people briefed on the negotiations said on Sunday, as a means to preserve that investment bank while Lehman Brothers looks likely to collapse.

"The move suggests a desperate effort at triage on Wall Street, as Bank of America works to shore up the likely next victim of the credit crunch. A deal, valued at between $25 a share to $30 a share, could be announced as soon as Sunday night, these people said. Merrill shares closed at $17.05 on Friday."

[jk]

Bank of America in Talks to Buy Merrill Lynch

Bank of America in Talks to Buy Merrill Lynch



Bank of America is in advanced talks to buy Merrill Lynch for at least $38.25 billion in stock, people briefed on the negotiations said on Sunday, as a means to preserve that investment bank while Lehman Brothers looks likely to collapse.
The move suggests a desperate effort at triage on Wall Street, as Bank of America works to shore up the likely next victim of the credit crunch. A deal, valued at between $25 a share to $30 a share, could be announced as soon as Sunday night, these people said. Merrill shares closed at $17.05 on Friday.
Bank of America, the nation’s second largest bank by asset size, had been mulling buying Lehman, perhaps in a consortium with other financial players. But with financial aid from the government looking unlikely, Bank of America has moved on to Merrill, these people said.
As Lehman began to totter in recent weeks, investors feared that Merrill would be the next victim of the credit squeeze. Shares in Merrill, which has already reported tens of billions of dollars in losses, have plunged more than 68 percent over the past year.


http://dealbook.blogs.nytimes.com/20.../index.html?hp

[Mega]

Re: Bank of America in Talks to Buy Merrill Lynch

JK, its a decoy!
To stop a run on them!
Mike

[Tulpen]

Re: Bank of America in Talks to Buy Merrill Lynch

A Red Herring, designed to divert attention from Lehman's troubles.

I suppose on Monday the stock market, and in particular the financials, will rally on this "great" and "bullish" news. CNBC is ready to call a new bottom because now all problems are solved and the future is bright.