Sunday, September 14, 2008

BAC Buys MER for $29 A Share!

That's right.... MER, which closed at $17.05 on Friday, is being purchased by BAC for $29 a share, per the WSJ and CNBC.

Naturally, everyone right now is wondering why BAC didn't just let MER open, trade down to $9, and buy it then.

Clearly, this deal is an attempt to "restore confidence" in the system. But the fact of the matter is, you can't "restore confidence" purely by manipulation.

I wonder how this will all look 6 months from now. I can tell you, a year later, how BAC's 2 billion infusion into CFC when CFC was trading $22 a share looks... not so good.


Jorge said...

Anyone see Bank of America turn into the next Citigroup, i.e. large bloated crap of a company?

Complacent Panda said...

Short BAC?

Dinosaur Trader said...

Yeah, I can't imagine any sane shareholder being happy with them paying 70% above Friday's close in this environment.

Odd indeed.


joshtrader1 said...

John thane, nit one of my favorite people
first hybrid now this

HPT said...

BAC is the largest retail bank in the US and growing with other banks closing. BAC is buying at a higher price so MER can raise more capital obviously, probably by a stock dilution. Does this make any fucking sense. What the Fuck is BAC doing. The stock market is the biggest punzi scheme ever. CRASH!