Can B of A Make the Universal Model Work?

September 18, 2008

On September 15, 2008, Merrill Lynch announced its sale to Bank of America. B of A continued its acquisition journey by adding the largest retail broker network in the world and a top three investment bank to its portfolio of businesses. The $50 billion purchase price was more than 50% over Merrill’s prior closing price, but less than one half Merrill’s market cap from early 2007. Citigroup has touted its universal model since 1998 but has yet to show real long term benefits.

Was the price right for B of A? Can B of A make the universal model work? What will be the ramifications of this deal for B of A and Merrill’s commercial and consumer franchises in the US? Will this transaction have a strategic impact on B of A’s global footprint?

Read more to find out how to receive access to this and other A & O Briefs.