Quote:
Originally Posted by SCORE-Cash
Welcome to the club of Merrill Lynch owners whose stock will be transfered to BOFA stock.
BOFA stock went down, today...
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Right. The deal is basically .86 shares of BAC stock per share of MER stock.
BAC. $26.55
MER. $17.60 (at the time)
So if the deal went through today then one share of MER would get you .86 shares of MER
worth .86*26.55 = $22.83 . That's a 30% profit. The risk being all the things that can go wrong with the deal in between here and then and of course the risk of a much lower BAC price. This deal is typical Ken Lewis though. Seems unlikely it would fall apart.