Bank of America added to its growing financial-services empire, purchasing Merrill Lynch in a $50 billion deal that will allow it to compete with rival Citigroup, the biggest U.S. bank by assets. Bank of America said early Monday it would acquire Merrill Lynch an all-stock transaction that should end the uncertainty about the future of the troubled brokerage. Bank of America has the most deposits of any U.S. bank, while Merrill Lynch is the world's largest and most recognized brokerage. The acquisition of Merrill Lynch “creates the premier financial company in the world,” Bank of America chief executive Ken Lewis said during a joint press conference with Merrill Lynch chief executive John Thain. “It was an opportunity of a lifetime.” Under terms of the deal, which was finalized in less than 48 hours, Bank of America would exchange 0.86 shares of its common stock for each Merrill Lynch common share. The transaction values Merrill Lynch at a 70 percent premium above its closing stock price Friday but well below what the brokerage was worth at its peak in early 2007. Merrill Lynch's shares jumped 26 percent in late morning trading on Monday, while Bank of America shares fell about 14 percent.
