MERRILL FLINCH (some at BoA want to scrap Merill-BoA deal)

NY Post ^ | 11/24/08 | AJA WHITEHOUSE and MARK DECAMBRE

[TigerLikesRooster]

MERRILL FLINCH

By KAJA WHITEHOUSE and MARK DECAMBRE

November 24, 2008 --

Some Bank of America shareholders are seeking to thwart the Charlotte-based financial giant's deal to buy beleaguered brokerage firm Merrill Lynch.

While it looks like a long shot now, it could be less of one after today.

So far, Proxy Governance Inc., a firm that advises shareholders, has come out in favor of the deal. But recommendations from two other leading proxy firms - RiskMetrics Group and Glass Lewis - are due today.

What's rankled some shareholders is the growing size of the deal spread, or the difference between a company's stock price and the price the acquiring company has agreed to pay.

Typically, the deal spread narrows as a merger nears its closing date. But with shareholders expecting to vote on the tie-up on Dec. 5, the spread is anything but. BofA agreed in mid-September to exchange 0.8595 of a share of its common stock for each Merrill common share. When the deal was announced, Merrill's stock was trading at $17 a share. Last week, it hit a new low of $7.08 though it ended Friday at $8.34.

Meanwhile, BofA shares are at $11.47, down 72 percent year-to-date.

What's more, the spread nearly doubled last week, suggesting growing doubts that it will succeed.

[TigerLikesRooster]

Would this really happen?

[TigerLikesRooster]

Ping!

[ken21]

bac stock has fallen since this acquisition.

[ex-Texan]

B of A bought a vast complex of severely toxic derivatives when it invested in Merrill Lynch. I commented and posted a link that explained, in part, some corruption infecting the Thundering Herd. Bull squat, methane gas and bovine f@rts explains why B of A wants out.

Visit my freeper page. There is a link to review all my posts. Educate yourselves. Nobody else gives a fat shi'te whether you learn or merely remain stupid as rocks . . .

[kidd]

My wife works at ML

Things are in disarray there. Brokers have already been offered retention bonuses (to keep them from leaving and taking their clients to the competition). The larger brokers have been offered very attractive terms while mid-level brokers have been offered insulting amounts. Minor brokers were offered nothing.

Many brokers have already left. Mostly for UBS.

Some ML employees want the BofA deal to crash so that ML can claim bank status and tap into some bailout money. Others think it would be best to have the stability of a big partner.