September 14, 2008: Bank of America Strikes Deal to Buy Merrill Lynch

Bank of America concludes an agreement to buy the troubled financial services company Merrill Lynch. Bank of America will pay Merrill Lynch’s shareholders in shares, offering stock worth $29 per one share in Merrill Lynch, which is 70 percent more than Merrill Lynch’s current market price. The sale follows a 68 percent decline in Merrill Lynch’s share price during the year amid writedowns and credit losses of $52bn. [Agency France-Presse, 9/15/2008; Bloomberg, 9/15/2008]