Merrill Lynch to be bought by B of A in $50 bln all-stock deal

Sep.15, 2008 in Mergers and Acquisitions

Merrill Lynch agrees to $50 billion bid from B of A

Wary of the global financial storm, firm accepts $29-share all-stock proposal

By MarketWatch

Last Update: 9/15/2008 9:49:00 AM

NEW YORK (MarketWatch) — Merrill Lynch & Co., navigating in a global financial
storm, agreed to be bought by Bank of America Corp. in an all-stock deal the
companies valued at $50 billion.

The deal, valuing Merrill (MER) at $29 a share, creates the world’s No. 1
securities brokerage, with more than 20,000 advisers and $2.5 trillion in client
assets.

Shares of Merrill Lynch rallied more than 25% in early trade Monday. Bank of
America (BAC) fell over 10% at last check.

It also creates a huge global force in managing wealth, underwriting equity and
high-yield debt, advising on mergers and acquisitions, and financing the consumer
economy through credit cards and car loans.

Merrill holds about a half-interest in BlackRock (BLK), which has $1.4 trillion
in assets under management. Bank of America manages $589 billion of assets.

The combination “enhances current strengths at Bank of America and creates new
ones, particularly outside of the U.S.,” Bank of America said in a statement on
Monday.

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