100% ILL
09-15-2008, 03:53 AM
This just came on the morning News
http://www.forbes.com/business/2008/09/15/lehman-aig-merrill-biz-wall-cx_lm_0915lehman.html
In a few tumultuous hours, the U.S. financial sector shrank significantly Sunday night. Efforts to prop up Lehman Brothers failed and Bank of America struck a deal to buy Merrill Lynch.
Capping a frenetic weekend of attempts to arrange a rescue for the foundering brokerage, Lehman Brothers said early Monday morning that it would file for Chapter 11 bankruptcy in a fashion that would allow many of its units to continue to operate.
Meanwhile, Merrill Lynch (nyse: MER - news - people ), one of the investment banks that considered being part of a consortium to rescue Lehman, agreed to be bought by Bank of America (nyse: BAC - news - people ) for $50 billion, or $29 a share. (See "The Universal Appeal Of BofA") The agreed price is a healthy 70% premium to Merrill's closing share price Friday of $17.05, but far below the $100-plus level its stock traded at in early 2007. It's a 38% premium to Merrill's book value of $21 a share.
This mess is affecting the European and Asian Markets as well
http://www.cnbc.com/id/26715321
http://www.forbes.com/business/2008/09/15/lehman-aig-merrill-biz-wall-cx_lm_0915lehman.html
In a few tumultuous hours, the U.S. financial sector shrank significantly Sunday night. Efforts to prop up Lehman Brothers failed and Bank of America struck a deal to buy Merrill Lynch.
Capping a frenetic weekend of attempts to arrange a rescue for the foundering brokerage, Lehman Brothers said early Monday morning that it would file for Chapter 11 bankruptcy in a fashion that would allow many of its units to continue to operate.
Meanwhile, Merrill Lynch (nyse: MER - news - people ), one of the investment banks that considered being part of a consortium to rescue Lehman, agreed to be bought by Bank of America (nyse: BAC - news - people ) for $50 billion, or $29 a share. (See "The Universal Appeal Of BofA") The agreed price is a healthy 70% premium to Merrill's closing share price Friday of $17.05, but far below the $100-plus level its stock traded at in early 2007. It's a 38% premium to Merrill's book value of $21 a share.
This mess is affecting the European and Asian Markets as well
http://www.cnbc.com/id/26715321