Merrill Lynch & Co., Inc. & Subsidiaries - Page 75




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          Resources to its sole shareholder, ML Consumer Markets Holdings,            
          Inc., of the consideration received in the cross-chain sales, and           
          (3) the imminent sale of ML Capital Resources to GATX/BCE.  The             
          written summary described the tax benefits of the plan, which               
          were predicated on an increase in petitioner’s basis in ML                  
          Capital Resources under the consolidated return regulations for             
          the proceeds of the cross-chain sales.  The written summary                 
          confirmed that the plan included the sale of ML Capital Resources           
          and described GATX/BCE as the “likely purchaser”.                           
               The written summary confirmed that, although the sale of ML            
          Capital Resources had not yet been finalized and the sale                   
          negotiations were not as far along as those in 1986, the                    
          negotiations were sufficiently mature and the sale sufficiently             
          likely to occur that the establishment of a tax reserve for the             
          transaction was warranted.  The written summary included a                  
          recommendation to the board of directors that a tax reserve                 
          specifically geared, in part, to the basis adjustment resulting             
          from the section 304 redemptions be approved.  In response to the           
          presentation regarding the plan, Merrill Parent’s board of                  
          directors approved the plan, ratified the cross-chain sales, and            
          authorized the appropriate officers to finalize the sale of ML              
          Capital Resources.                                                          
               Petitioner attempts to minimize the impact of the written              
          summary by pointing out that the summary was prepared for a board           






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Last modified: May 25, 2011