Merrill's O'Neal talked merger with Wachovia

Merrill board irked by CEO E. Stanley O'Neal's unauthorized outreach, The New York Times reports.
OCT 26, 2007
Merrill Lynch & Co. Inc. chief executive E. Stanley O'Neal considered merging with Wachovia Corp. without first getting approval from Merrill's board of directors, according to a report in The New York Times. The board considers the merger overture a “major breach of corporate protocol," and its reaction may indicate that a merger with Charlotte, N.C.-based Wachovia was "not likely for now," noted people familiar with the situation. The board considers the merger overture a “major breach of corporate protocol." Talks occurred before Merrill reported a $7.9 billion third quarter write-down this week, resulting from losses in collateralized debt obligation investments this week, according to the report (InvestmentNews, October 24) . Mr. O'Neal called G. Kennedy Thompson, Wachovia's chairman and chief executive, just days before Merrill's board meeting last Sunday, according to the report. Mr. Thompson expressed interest in starting a conversation with Mr. O'Neal, while he acknowledged the difficulty of the deal. Merrill's board was so upset with Mr. O'Neal that it even discussed names of potential candidates to replace him, according to people with knowledge of the board's proceedings cited in the report. The candidates discussed included Laurence Fink, chairman and chief executive of BlackRock Inc., which is partially owned by Merrill, and John A. Thain, chief executive of NYSE Euronext Inc. Representatives of Merrill and Wachovia were not available to comment to the Times. CNBC television reported this morning that Mr. O'Neal has told friends that he expects to be booted by the end of the weekend.

Latest News

Ex-JPMorgan banker refiles harassment claims in federal court
Ex-JPMorgan banker refiles harassment claims in federal court

Chirayu Rana has added two executives as defendants after dropping his state case against JPMorgan Chase last week.

Betterment lawsuit just scratches the surface on cash sweep conflicts, says Max CEO
Betterment lawsuit just scratches the surface on cash sweep conflicts, says Max CEO

A class action over the digital brokerage's cash sweep program only hints at an industry-wide reckoning over how client cash is handled, says Gary Zimmerman.

Pontera launches bulk rebalancing to ease advisors' 401(k) workload
Pontera launches bulk rebalancing to ease advisors' 401(k) workload

New tool lets advisory teams manage shared retirement-plan accounts en masse as Vanguard retirement plan data show rising exposures to equities across demographics.

Survey finds many Americans don’t know their own net worth
Survey finds many Americans don’t know their own net worth

Three in four Americans can’t estimate their net worth without checking an app or account, according to a new Western & Southern survey.

Ameriprise boasts $1B AI spend as rivals race for tech leadership
Ameriprise boasts $1B AI spend as rivals race for tech leadership

Ameriprise's tech spending declaration lands amid a wider broker-dealer arms race, with Edward Jones, Raymond James and LPL all expanding AI tools for advisors

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income