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TMFAleph1 (96.59)

Thain Gets the Job Done at Merrill

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September 15, 2008 – Comments (6) | RELATED TICKERS: BAC , LEH , MER.DL2

We went into the weekend thinking Bank of America (NYSE: BAC) might rescue Lehman Brothers (NYSE: LEH). In a twist that demonstrates how fluid the current environment is, Lehman is out, with B of A announcing it will acquire Merrill Lynch (NYSE: MER) in an all-stock deal valuing the broker-dealer at $29/share or 1.8 times stated tangible book value.

A huge deal
The deal ends the 94-year independence of one of Wall Street's legendary firms and... (more)

6 Comments – Post Your Own

#1) On September 15, 2008 at 12:30 PM, rd80 (97.31) wrote:

The all-stock deal values MER at .8595 x BAC.  That's no longer $29.

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#2) On September 15, 2008 at 12:43 PM, TMFAleph1 (96.59) wrote:

rd80,

Thanks for your comment, which is true enough -- it appears Bank of America shareholders are not that excited about the deal.

XMFMarathonMan (Alex Dumortier)

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#3) On September 15, 2008 at 12:43 PM, TMFAleph1 (96.59) wrote:

rd80,

Thanks for your comment, which is true enough -- it appears Bank of America shareholders are not that excited about the deal.

XMFMarathonMan (Alex Dumortier)

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#4) On September 15, 2008 at 1:00 PM, rd80 (97.31) wrote:

Can't blame the shareholders for being unhappy.  1.8x tangible book is a good price if MER really cleaned out the balance sheet, but it sure looks like BAC should have been able to do this deal for quite a bit less.

If BAC shares fall much further, the folks at  Temasek aren't going to be pleased about the money they put in to MER either.

Good article.  Thain did save MER shareholders quite a bit of pain with this deal.

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#5) On September 15, 2008 at 1:31 PM, TMFAleph1 (96.59) wrote:

rd80,

Thanks for your comment, which is true enough -- it appears Bank of America shareholders are not that excited about the deal.

XMFMarathonMan (Alex Dumortier)

Report this comment
#6) On September 15, 2008 at 2:47 PM, TMFAleph1 (96.59) wrote:

rd80,

Thanks for your comment, which is true enough -- it appears Bank of America shareholders are not that excited about the deal.

XMFMarathonMan (Alex Dumortier)

Report this comment

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