Sun, Sep 14, 2008 at 9:32:50 pm
Huge financial news today; it’s anybody’s guess how the market is going to react tomorrow: Bank of America to buy Merrill for $44 billion.
WASHINGTON/NEW YORK (Reuters) - Bank of America Corp (BAC.N) has agreed to acquire Merrill Lynch & Co Inc (MER.N) for $44 billion, according to people briefed on the matter, in a deal that will give the U.S. bank the world’s largest brokerage.
The deal came after a weekend of tense negotiations over Lehman Brothers Holdings Inc (LEH.N), which late Sunday teetered on the brink of liquidation, triggering concern that market participants would lose faith in other investment banks.
A Merrill Lynch spokeswoman declined comment and a Bank of America spokesman could not immediately be reached for comment.
“It catapults Bank of America into positions of strength in three businesses where they were weak,” said James Ellman, portfolio manager at hedge fund Seacliff Capital.“
”Now Bank of America has one of the best and largest retail brokerages in the country, one of the top investment banks in the world, and a large stake in one of the best investment managers in the world," Ellman said.