BAC shareholders forced to bailout Merrill Lynch

Is shareholder approval ever needed to get these deals done? Or does the board have that ultimate authority to make these decisions?
 
If MER was in such bad shape that they had to move, then they need capital.

Its all stock but how much money is BAC gonna inject to stabilize this?

And where is that money coming from.

I have $50 dollars in my BAC checking account does this mean I own $25 of MER?
 
Quote from lrm21:

I have $50 dollars in my BAC checking account does this mean I own $25 of MER?
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no ..this means you are under the minimum and will be charged a $15.00 monthly fee....
 
So thats how they're go finance this deal.

I would expect the $15.00 to go up to $250.00 and minimum balance of $500K. with an 10% early withdrawal.

This should cover the funding gap.
 
Yep. Dumb price like that should have an independent investigation on the deal. Wall Street doesn't accept that price, current market cap is about $30B, not $50B. And dump BAC to -20%.

Quote from Daal:

its amazing that they want to pay a big premium. mer would be out of business in days, they are doing them a big favor
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Quote from wilburbear:

BAC CEO is doing the round of talk shows to assure the investment community that he received no influence from government entities to buy MER. The following story uses words like "pressed" and "pushing" to describe the government in the BAC-MER deal.

Paulson also pressed the big banks to help with the current cleanup. Strange. I guess Paulson talked to everyone except BAC.

http://biz.yahoo.com/ap/080914/lehman_brothers.html
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BAC CEO Lewis's verbal comments at the time of the MER deal misled investors into thinking that the deal could be done without gov't help.

Lawyers should go back over his public statements from this time period.
 
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