Merrill Lynch/BlackRock Stan the man

Why is Stan O’Neal handing over control of Merrill Lynch’s asset-management division for such an apparently low price? The sale of Merrill Lynch Investment Managers to Blackrock for just over $9bn of stock crystallizes its value at 16 times last year’s pretax earnings. That compares to more than 22 times the implied value for Blackrock. Yet while that may look like a sellout, O’Neal has managed to unlock value for his shareholders. Like its rivals, Merrill has discovered over the years that hav...