Merrill Lynch CEO does not rule out merger with HSBC

LONDON (AFX) - David Komansky, chief executive of Merrill Lynch, yesterday fanned the flames of speculation that the U.S. investment bank might be taken over by HSBC Holdings PLC, the Independent on Sunday said.

	    The report came after Komansky refused to rule out a merger on U.S. television, saying if the two were to join forces, it would create a company with "enormous financial reach... a huge balance sheet with a combination of our expertise, so, from that point of view it would make sense."

	    The implications of such a deal would be enormous, the paper added, as the combined company would become one of the world's largest investment groups with a possible market capitalisation of over 100 bln stg and a staff of more than 200,000.

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