Bank of America Acquiring Merrill Lynch
Source: http://www.navivest.com/blogPosted on Sunday, September 14th, 2008 | In Stocks to Watch
Bank of America (BAC) has reportedly acquired Merrill Lynch (MER), in a deal that’s worth $44 billion, or $29 for each share of Merrill Lynch (MER). The boards of both companies have reportedly approved the deal.
While the $29 per share offer represents a rich 70% premium to Merrill Lynch’s (MER) closing price of $17.05 on Friday 09/12/08, it is still an almost $8 discount to the recent high of $36.97 level that Merrill Lynch’s (MER) shares touched on July 23 of this year and a 63% discount to the stock’s 52 week high.
The purchase of Merrill Lynch (MER) by Bank of America (BAC) will come as a surprise, as the bank was as late as Sunday evening, looking through Lehman Brothers’ (LEH) book and was considered one of the most likely buyers of Lehman (LEH).
A tie up of both companies will create a financial powerhouse that will rival Citigroup, which is currently the largest bank in the U.S., based on asset.
Last 5 posts by Daniel Shepard
- Stocks Should Rebound Tomorrow - November 19th, 2008
- The Trading Day Ahead - 11/19/08 - November 19th, 2008
- The Trading Plan For Today - 11/18/08 - November 18th, 2008
- October PPI Numbers Due Tomorrow - November 17th, 2008
- The Trading Day Ahead - 11/17/08 - November 17th, 2008
Bank, Bank Of America, Citigroup, Lehman Brothers, likely buyers, Merrill Lynch, Stocks to Watch, United States, USD
 About Daniel Shepard (http://www.navivest.com/blog)
Daniel Shepard is an Equity Analyst with Navivest, a stocks and options trading advisory services company that provides trading ideas on a subscription basis. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.