Mother Merrill Turns 50-Something

Will Merrill's dalliance with the $50's prove to be a brief flirtation or the start of a long term relationship? This stock is getting younger, and the story is getting ugly.

Stan is not the man today, and the calls for his head are coming fast and furious.

The stock might look tempting to those who love a good bargain. Speaking of sales, Stan might soon hold a tag sale:

Merrill Lynch all but hung a "For Sale" sign today on its 20 percent holding of Bloomberg LP, the financial information company.

Talking to Wall Street analysts about the company's abysmal third-quarter results, CEO Stanley O'Neal and chief financial officer Jeff Edwards said they would be looking hard at possibly selling some of their "non-core assets." No specifics were provided, but Bloomberg would definitely have to be labeled non-core.

Moreover, analyst Mike Mayo of Deutsche Bank gave O'Neal a chance to say Merrill and Bloomberg would never part, and O'Neal didn't bite. Mayo asked straight on whether Merrill might consider selling its Bloomberg holding and included another Merrill asset, a nearly 50 percent interest in BlackRock , in the question. O'Neal proceeded to extol Merrill's BlackRock holding, but said nothing - zero - about Bloomberg.

Merrill's 20 percent stake in Bloomberg would be worth at least $4 billion based on Fortune's estimate, included in its recent article ( "Bloomberg's money machine," April), that Bloomberg LP is worth at least $20 billion. Fortune

It is lonely at the top. We used to catch Stan dining, often alone, at Nicola's.

146 E 84th
Very traditional sort of place. Old-fashioned, lip-smacking Italian eats done New York style in a swanky setting with select clientele and discriminating waitstaff. Draws a regular crowd of locals as well as a host of notable politicos and celebrities. Dress is smart casual to business dressy.

We don't know the next time he will eat there, but we have a recommendation for Stan. And it does not involve food.

Sit with your back to the wall. Your bankers are up in arms, and are getting a little emotional.

There is a winner in all of this. Jimmy Cayne must be smiling, given that Stan bumped him off the front pages.



Merrill Lynch looks to shed assets
Fortune

Merrill Lynch Cuts Compensation in Half
AP

-----------------------------------------------------------------------------------------------------------------------
The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Position

Comments:

<< Back to main