Merrill broached the possibility of a merger with Wachovia

Discussion in 'Wall St. News' started by ASusilovic, Oct 26, 2007.

  1. Source :

    http://www.nytimes.com/2007/10/26/business/26merril1.html?_r=1&hp&oref=slogin

    Facing billions of dollars in losses from the subprime mortgage crisis, Merrill Lynch chairman and chief executive, E. Stanley O’Neal, floated the idea of a merger with a large bank, a foray that angered Merrill’s board and could cost him his job, according to people close to the beleaguered Wall Street firm.

    Mr. O’Neal broached the possibility of a merger with Wachovia, the bank based in Charlotte, N.C., without first getting the approval of Merrill’s board, a major breach of corporate protocol at a time when directors were already concerned about the company’s performance, these people said.

    Merrill’s board was so upset with Mr. O’Neal that it even discussed the names of potential candidates to replace him, according to people with knowledge of the board’s proceedings. Candidates who were discussed include Laurence D. Fink, chairman and chief executive of BlackRock, an investment firm partly owned by Merrill, and John A. Thain, chief executive of the New York Stock Exchange.

    Jason Wright, a Merrill Lynch spokesman, declined to comment on contacts with possible merger partners. A Wachovia spokeswoman declined to comment.
     
  2. gee Merrill cant price its CMOs and it expects somebody to buy them out.....

    it's like tying two rocks together...