Merrill Lynch & Co., Inc. & Subsidiaries - Page 27




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          as to price and terms by April 10, 1987.  The 3-volume offering             
          memorandum indicated that ML Capital Resources “does not intend             
          to engage in substantial negotiations with respect to the terms             
          of the Stock Purchase Agreement” and proposed an April 30, 1987,            
          closing date.                                                               
               On March 13, 1987, the chairman of the board of ML Capital             
          Resources authorized a five-person team to pursue the divestiture           
          of ML Capital Resources, four of whom had been involved in the              
          sale of ML Leasing.  Mr. Sands again was appointed as chief                 
          negotiator.                                                                 
               In and around March 1987, Merrill Parent contacted various             
          potential purchasers regarding the sale of ML Capital Resources.            
          The ultimate purchaser, GATX Leasing Corp. (GATX), on behalf of             
          itself and BCE Development, Inc. (BCE), a majority-owned                    
          subsidiary of Bell Canada Enterprises (collectively referred to             
          as GATX/BCE unless otherwise indicated), apparently received the            
          preliminary offering memorandum sometime during March 1987                  
          because ML Capital Markets sent GATX/BCE a confidentiality                  
          agreement dated March 23, 1987.                                             
               B.  Section 304 Cross-Chain Sales                                      
               1.  Five Subsidiaries                                                  
               Effective March 28 and March 30, 1987, respectively, the               
          boards of directors of ML Capital Resources and Merrill Lynch               
          Realty, Inc. (ML Realty or MLRI), a wholly owned subsidiary of              






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