Merrill Lynch/BlackRock Could Encounter Proxy Issues

The road to merger between Merrill Lynch and BlackRock could get rocky, if the experience of an earlier such merger repeats itself. Dow Jones Newswires points out that Merrill Lynch would not be able to complete the transfer of mutual fund contracts to BlackRock without shareholder approval, under a New York Stock Exchange rule. That rule, reports DJN, proved costly in the recent Citigroup/Legg Mason swap of $3.7 billion in assets. But observers expect smoother sailing with Merrill Lynch and BlackRock, as shareholders are less likely to object to the deal since all funds involved are performing well, as opposed to some in the Citigroup/Legg Mason deal, some of which were traded at deep discounts.