Township uncertain about impact of Merrill’s sale

Mayor thinks Southfields stands a good chance of emerging from the sale relatively unscathed

By John Tredrea, Staff Writer
   A Merrill Lynch spokeswoman said Monday it is too early to tell what effect the sale of Merrill to Bank of America will have on the Southfields office park in Hopewell Township and its employees.
   ”We don’t know yet how any specific sites will be affected by the sale,” Selena Morris said from her office in Merrill’s New York City headquarters.
   The world was stunned Monday by Bank of America’s purchase of Merrill in a $50 billion all-stock transaction.
   Southfields is the biggest employer in the township. There are between 5,000 and 6,000 working at the site. It also is the second largest employer in Mercer County “by a couple of hundred,” Hopewell Township Mayor Vanessa Sandom said Tuesday.
   In e-mailed comments, Mayor Sandom said: “Obviously, these are very uncertain and stressful times on Wall Street and Main Street. Our hearts go out to those affected by this merger, and we stand ready to help in any way we can.
   ”But it’s also important for us in Hopewell Township to note that both companies have explained the sound strategic business reasons why this deal makes sense for both Bank of America and Merrill Lynch. In their view, merging a well-managed U.S. retail business with a solid global investment bank with a world-leading wealth management business makes great sense.”
   The mayor thinks Southfields stands a good chance of emerging from the sale relatively unscathed.
   ”Merrill’s wealth management business is housed here in Hopewell Township, an area where there is very little overlap with Bank of America,” the mayor added. “Therefore, although the future is uncertain, this would seem to be one of the business areas in the new combined company that should remain the least affected by the merger.”
   She concluded: “We are cautiously optimistic that once things settle down, the combined company will be in a much stronger position than they were before this acquisition. Indeed we had been planning on getting together to talk about issues that affect the township, the county and Merrill and we’re still on track to do that.”
   ”Acquiring one of the premier wealth management, capital markets, and advisory companies is a great opportunity for our shareholders,” Bank of America Chairman and CEO Ken Lewis said on Bank of America’s Web site. “Together, our companies are more valuable because of the synergies in our businesses.”
   ”Merrill Lynch is a great global franchise and I look forward to working with Ken Lewis and our senior management teams to create what will be the leading financial institution in the world with the combination of these two firms,” said John Thain, chairman and CEO of Merrill Lynch.
   The demise takeover of Merrill is one of the events in the ongoing series of major financial calamities analysts say are linked to questionable lending practices. Other major firms in dire straits include Lehman Brothers, which has filed for bankruptcy, and American International Group Inc. (AIG), which, according to Bloomberg.com, has been saved for now by the U.S. government.
   On Wednesday, a Bloomberg account said: “The U.S. government took control of American International Group Inc. in an $85 billion bailout to prevent the bankruptcy of the nation’s biggest insurer and the worst financial collapse in history. The Federal Reserve will provide a two-year loan, take 79.9 percent of the New York-based company’s stock and replace its management.”
   It was 10 years ago that the Hopewell Township Planning Board concluded a long series of contentious hearings by unanimously approving Merrill’s proposal to build Southfields off I-95 and Scotch Road.