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OMB APPROVAL |
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OMB Number: 3235-0145 |
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Expires: February 28, 2009
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
(Name of Issuer)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
(CUSIP Number)
Merrill Lynch & Co., Inc.
4 World Financial Center
250 Vesey Street
New York, New York 10080
Telephone: (212) 449 - 1000
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
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CUSIP No. |
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US09247X1019 |
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Page |
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2 |
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of |
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26 |
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1 |
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NAMES OF REPORTING PERSONS:
MERRILL LYNCH & CO., INC. |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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OO |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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þ |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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DELAWARE
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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0 Shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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52,397,248 Shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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0 Shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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52,397,248 Shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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52,397,248 Shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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45%1 |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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HC, CO |
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1 |
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Based on 116,431,385 shares of Common Stock, par value $0.01, of BlackRock, Inc. outstanding as of September 29, 2006, as provided by BlackRock, Inc. to the Reporting Persons on September 29, 2006 (the Common Stock Outstanding). |
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CUSIP No. |
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US09247X1019 |
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Page |
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3 |
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of |
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26 |
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1 |
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NAMES OF REPORTING PERSONS:
MERRILL LYNCH INVESTMENT MANAGERS, L.P. |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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OO |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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DELAWARE
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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2,832,559 Shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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0 Shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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2,832,559 Shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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0 Shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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2,832,559 Shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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2.4%1 |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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PN, IA |
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1 |
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Based on the Common Stock Outstanding. |
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CUSIP No. |
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US09247X1019 |
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Page |
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4 |
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of |
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26 |
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1 |
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NAMES OF REPORTING PERSONS:
FUND ASSET MANAGEMENT, L.P. |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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OO |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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DELAWARE
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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15,945,223 Shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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0 Shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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15,945,223 Shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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0 Shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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15,945,223 Shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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13.7%1 |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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PN, IA |
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1 |
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Based on the Common Stock Outstanding. |
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CUSIP No. |
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US09247X1019 |
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Page |
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5 |
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of |
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26 |
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1 |
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NAMES OF REPORTING PERSONS:
PRINCETON ADMINISTRATORS, L.P. |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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OO |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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DELAWARE
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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6,675 Shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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0 Shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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6,675 Shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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0 Shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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6,675 Shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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Less than 0.01 %1 |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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PN, IA |
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1 |
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Based on the Common Stock Outstanding. |
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CUSIP No. |
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US09247X1019 |
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Page |
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6 |
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of |
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26 |
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1 |
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NAMES OF REPORTING PERSONS:
MERRILL LYNCH GROUP, INC. |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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OO |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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DELAWARE
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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0 Shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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18,784,457 Shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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0 Shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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18,784,457 Shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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18,784,457 Shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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16.1%1 |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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HC, CO |
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1 |
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Based on the Common Stock Outstanding. |
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CUSIP No. |
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US09247X1019 |
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Page |
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7 |
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of |
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26 |
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1 |
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NAMES OF REPORTING PERSONS:
PRINCETON SERVICES, INC. |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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OO |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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DELAWARE
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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0 Shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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18,784,457 Shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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0 Shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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18,784,457 Shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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18,784,457 Shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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16.1%1 |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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CO, HC |
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1 |
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Based on the Common Stock Outstanding. |
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CUSIP No. |
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US09247X1019 |
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Page |
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8 |
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of |
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26 |
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1 |
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NAMES OF REPORTING PERSONS:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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OO |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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þ |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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DELAWARE
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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2,166 Shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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0 Shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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2,166 Shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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0 Shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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2,166 Shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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Less than 0.01%1 |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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BD, IA, CO |
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1 |
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Based on the Common Stock Outstanding. |
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CUSIP No. US09247X1019
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|
Page 9 of 26 |
Item 1. Security and Issuer.
This statement on Schedule 13D (this Schedule 13D) relates to shares of Common Stock, par
value $0.01 per share (the Shares), of BlackRock, Inc. (formerly New BlackRock, Inc. and New
Boise, Inc.) (the Issuer). The principal executive offices of the Issuer are located at 40 East
52nd Street, New York, New York 10022.
Item 2. Identity and Background.
This statement is being filed by Merrill Lynch & Co., Inc. (ML&Co.), Merrill Lynch
Investment Management, L.P. (MLIM LP), Fund Asset Management, L.P. (FAM LP), Princeton
Administrators, L.P. (Princeton Administrators), Merrill Lynch Group, Inc. (ML Group),
Princeton Services, Inc. (Princeton Services) and Merrill Lynch, Pierce, Fenner & Smith
Incorporated (MLPF&S) (collectively, the Reporting Persons).
ML&Co. is a Delaware corporation that, through its subsidiaries, including the other Reporting
Persons, provides broker-dealer, investment banking, financing, wealth management, advisory, asset
management, insurance, lending, and related products and services on a global basis. ML Group is a
Delaware corporation. Princeton Services is a Delaware corporation. Princeton Services is the
general partner of each of Princeton Administrators, MLIM LP, and FAM LP. MLIM LP, Princeton
Administrators, and FAM LP are Delaware limited partnerships that formerly owned many of the assets
that constituted the Merrill Lynch Investment Managers asset management business (the MLIM
Business) that was contributed to the Issuer in the transaction described in Items 3, 4, and 6
below. MLPF&S is a Delaware corporation.
The principal business address of ML&Co., and the address of its principal office, is 4 World
Financial Center, 250 Vesey Street, New York, New York 10080. The principal business address of
each other Reporting Person is c/o ML&Co. at the same address.
The name, present principal occupation or employment (and the name, principal business and
address of any corporation or other organization in which such employment is conducted), and
citizenship of each director of ML&Co. are set forth in Schedule I-A hereto and are
incorporated herein by reference. The name, business address, present principal occupation or
employment, and citizenship of each executive officer of ML&Co. are set forth in Schedule
I-B hereto and are incorporated herein by reference. The name, present principal occupation or
employment (and the name, principal business and address of any corporation or other organization
in which such employment is conducted), and citizenship of each director of ML Group are set forth
in Schedule II-A hereto and are incorporated herein by reference. The name, business
address, present principal occupation, and citizenship of each executive officer of ML Group are
set forth in Schedule II-B hereto and are incorporated herein by reference. The name,
present principal occupation or employment (and the name, principal business and address of any
corporation or other organization in which such employment is conducted), and citizenship of each
director of Princeton Services are set forth in Schedule III-A hereto and are incorporated
herein by reference. The name, business address, present principal occupation or employment, and
citizenship of each executive officer of Princeton Services are set forth in Schedule III-B
hereto and are incorporated herein by reference. The name, present principal occupation or
employment (and the name, principal business and address of any corporation or other organization
in which such employment is conducted), and citizenship of each director of MLPF&S are set forth in
Schedule IV-A hereto and are incorporated herein by reference. The name, business address,
present principal occupation or employment, and citizenship of each executive officer of MLPF&S are
set forth in Schedule IV-B hereto and are incorporated herein by reference.
During the last five years, none of the Reporting Persons, nor, to the knowledge of each of
the Reporting Persons, any of the persons listed on Schedules I-A, I-B, II-A, II-B, III-A, III-B,
IV-A, or IV-B hereto (i) has been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors) or (ii) has been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding was or is subject
to a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating
activities subject to federal or state securities laws or finding any violation with respect to
such laws, except as noted in the paragraphs below.
As part of a settlement relating to managing auctions for auction rate securities, the
Securities and Exchange Commission (the Commission) accepted the offers of settlement of 15
broker-dealer firms, including MLPF&S, and issued a settlement order on May 31, 2006. The
Commission found, and MLPF&S neither admitted nor denied, that respondents (including MLPF&S)
violated section 17(a)(2) of the Securities Act of 1933 by managing auctions for auction rate
securities in ways that were not adequately
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Page 10 of 26 |
disclosed or that did not conform to disclosed procedures. MLPF&S consented to a cease and
desist order, a censure, a civil money penalty, and compliance with certain undertakings.
In March 2005, ML&Co. and certain of its affiliates (ML&Co. and its affiliates collectively,
Merrill Lynch) reached agreements with the State of New Jersey and the New York Stock Exchange
(the NYSE) and reached an agreement in principle with the State of Connecticut pursuant to which
Merrill Lynch, without admitting or denying the allegations, consented to a settlement that
included findings that it failed to maintain certain books and records and to reasonably supervise
a team of former financial analysts (FAs) who facilitated improper market timing by a hedge fund
client. Merrill Lynch terminated the FAs in October 2003, brought the matter to the attention of
regulators, and cooperated fully in the regulators review. The settlement will result in aggregate
payments of $13.5 million.
In March 2005, Merrill Lynch reached an agreement in principle with the NYSE pursuant to which
Merrill Lynch, without admitting or denying the allegations, later consented to a settlement that
included findings with regard to certain matters relating to the failure to deliver prospectuses
for certain auction rate preferred shares and open-end mutual funds; the failure to deliver product
descriptions with regard to certain exchange-traded funds; the failure to ensure that proper
registration qualifications were obtained for certain personnel; issues with regard to the
retention, retrieval and review of e-mails; isolated lapses in branch office supervision; late
reporting of certain events such as customer complaints and arbitrations; the failure to report
certain complaints in quarterly reports to the NYSE due to a systems error; and partial
non-compliance with Continuing Education requirements. The settlement resulted in a payment of $10
million to the NYSE.
On November 3, 2004, a jury in Houston, Texas convicted four former Merrill Lynch employees of
criminal misconduct in connection with a Nigerian barge transaction that the government alleged
helped Enron inflate its 1999 earnings by $12 million. The jury also found that the transaction led
to investor losses of $13.7 million. Those convictions were reversed by a federal appellate court
on August 1, 2006, except for one conviction against one employee based on perjury and obstruction
of justice. The government has appealed the reversals. In 2003, Merrill Lynch agreed to pay $80
million to settle Commission charges that it aided and abetted Enrons fraud by engaging in two
improper year-end transactions in 1999, including the Nigerian barge transaction. The $80 million
paid in connection with the settlement with the Commission will be made available to settle
investor claims. In September 2003, the United States Department of Justice agreed not to prosecute
Merrill Lynch for crimes that may have been committed by its former employees related to certain
transactions with Enron, subject to certain understandings, including Merrill Lynchs continued
cooperation with the Department, its acceptance of responsibility for conduct of its former
employees, and its agreement to adopt and implement new policies and procedures related to the
integrity of client and counter-party financial statements, complex structured finance transactions
and year-end transactions.
On or about June 27, 2003, the Attorney General for the State of West Virginia brought an
action against the defendants that participated in the April 28, 2003, settlement described below.
The action, filed in the West Virginia State Court, alleged that the defendants research practices
violated the West Virginia Consumer Credit and Protection Act. On September 16, 2005, the Circuit
Court of Marshall County, West Virginia, dismissed the case, following an earlier decision by the
West Virginia Supreme Court holding that the West Virginia Attorney General lacked authority to
bring the claims.
On October 31, 2003, the United States District Court for the Southern District of New York
entered final judgments in connection with alleged conflicts of interest affecting research
practices. The final settlements pertaining to Merrill Lynch, which involved both monetary and
non-monetary relief, brought to a conclusion the regulatory actions against Merrill Lynch related
to its research practices. Merrill Lynch entered into these settlements without admitting or
denying the allegations and findings by the regulators, and the settlements did not establish
wrongdoing or liability for purposes of any other proceedings.
For further information, reference is made to the Form ADV of Merrill Lynch on file with, and
publicly available on the website of, the Commission.
The
Reporting Persons have entered into a Joint Filing Agreement, dated
as of October 10,
2006, a copy of which is attached hereto as Exhibit 7.01.
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Item 3. Source and Amount of Funds or Other Consideration.
On September 29, 2006 (the Closing Date), the Reporting Persons acquired an aggregate of
52,395,082 Shares and 12,604,918 shares of non-voting Series A Convertible Participating Preferred
Stock, par value $0.01 per share (the Preferred Stock), pursuant to the closing of the
contribution of the MLIM Business to the Issuer in accordance with the Transaction Agreement and
Plan of Merger, by and among ML&Co., BlackRock, Inc. (now BlackRock Holdco 2, Inc.), the Issuer,
and Boise Merger Sub, Inc., dated as of February 15, 2006 (the Transaction Agreement), which is
attached hereto as Exhibit 7.02 and is incorporated by reference in its entirety into this
Item 3. MLPF&S beneficially owns an aggregate of 2,166 Shares, which it acquired in ordinary course proprietary trading activity.
None of the individuals listed on Schedules I-A, I-B, II-A, II-B, III-A, III-B, IV-A, or IV-B
hereto has contributed any funds or other consideration towards the purchase of securities of the
Issuer, other than the Shares held by such persons as disclosed on Schedule V hereto.
Item 4. Purpose of Transactions.
The responses set forth in Items 3 and 6 of this Schedule 13D are incorporated by reference in
their entirety into this Item 4.
Except as described in this Schedule 13D, the Reporting Persons and the persons listed on
Schedules I-A, II-A, II-B, III-A, III-B, IV-A, and IV-B hereto currently have no plans or proposals
which relate to or would result in any transaction, event or action enumerated in paragraphs (a)
through (j) of Item 4 of the form of Schedule 13D promulgated under the Securities Exchange Act of
1934, as amended (together with the rules and regulations promulgated thereunder, the Exchange
Act).
Item 5. Interest in Securities of the Issuer.
(a) As of the Closing Date, the Reporting Persons beneficially owned, in the aggregate,
52,397,248 Shares and 12,604,918 shares of Preferred Stock. The beneficially owned Shares
represent, in the aggregate, beneficial ownership of approximately 45% of the Common Stock
Outstanding. As a result of the matters described in Items 3 and 6, the Reporting Persons
constitute a group, within the meaning of Section 13(d)(3) of the Exchange Act. Accordingly,
each Reporting Person may be deemed to beneficially own any Shares that may be beneficially owned
by each other Reporting Person.
The aggregate number and percentage of Shares beneficially owned by each of the persons listed
on Schedules I-A, I-B, II-A, II-B, III-A, III-B, IV-A, and IV-B hereto are set forth on Schedule V
hereto, which is incorporated by reference into this Item 5(a).
(b) Each Reporting Person shares the power to vote or direct the vote and to dispose or direct
the disposition of Shares beneficially owned by such Reporting Person as indicated above.
Each Reporting Person shares the power to dispose or direct the disposition of shares of
Preferred Stock beneficially owned by such Reporting Person as indicated above.
(c) Schedule VI hereto, which is incorporated by reference in its entirety into this Item
5(c), sets forth the transactions in the Shares which, to the knowledge of Merrill Lynch, have been
effected during the 60 days prior to the Closing Date (excluding any transactions that may have
been effected for managed accounts with funds provided by third party customers). All of the
transactions set forth on Schedule VI were effected in the ordinary course of business of Merrill
Lynch, in ordinary course trading activities. The transactions in the Shares described on Schedule
VI were effected on the NYSE or the over-the-counter market. Except as described above, no
transactions in the Shares were effected by the Reporting Persons, or, to their knowledge, any of
the persons listed on Schedules I-A, I-B, II-A, II-B, III-A, III-B, IV-A or IV-B hereto during such
60-day period.
(d) Not applicable.
(e) Not applicable.
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Page 12 of 26 |
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the
Issuer
As described in Item 3 above, on the Closing Date, pursuant to the Transaction Agreement, the
Issuer and certain of its affiliates transferred to Merrill Lynch 65,000,000 shares of Issuer
stock, consisting of 52,395,082 Shares and 12,604,918 shares of Preferred Stock. This summary of
the Transaction Agreement does not purport to be complete and is qualified in its entirety by
reference to the Transaction Agreement, which is attached hereto as Exhibit 7.02 and is
incorporated by reference in its entirety into this Item 6.
Pursuant to a Stockholder Agreement by and among ML & Co. and the Issuer, dated as of February
15, 2006, and amended on the Closing Date (the Stockholder Agreement), there is a limitation on
the percentage of capital stock that may be owned by Merrill Lynch at any time (the Merrill
Ownership Cap). Due to the Merrill Ownership Cap, Merrill Lynch is not permitted to acquire any
additional capital stock of the Issuer if, after such acquisition, it would hold in the aggregate
greater than 49.8% of the total voting power of the voting securities of the Issuer issued and
outstanding at such time, or 49.8% of the sum of the voting securities and preferred stock of the
Issuer issued and outstanding at such time and issuable upon the exercise of any options or other
rights outstanding at such time. The Stockholder Agreement provides that Merrill Lynch is not
permitted to transfer any shares of capital stock of the Issuer for a period of three years
following the Closing Date, without the prior written consent of the Issuer, and also subjects
Merrill Lynch to further transfer restrictions. The Stockholder Agreement also provides that
Merrill Lynch shall be entitled to designate two directors to the Issuers Board.
Under the Stockholder Agreement, from and after the Closing Date, Merrill Lynch has agreed
that it will not, subject to certain exceptions, compete against any of the businesses of the
Issuer anywhere in the world, and the Issuer has agreed that it will not compete in the retail
securities brokerage business. The Stockholder Agreement will terminate upon the later of the
fifth anniversary of the Closing Date and the first date on which Merrill Lynch owns less than 20%
of the total voting power of the outstanding voting securities of the Issuer. The transfer
restrictions imposed on Merrill Lynch, however, survive the termination of the Stockholder
Agreement until Merrill Lynch beneficially owns less than 5% of the total voting power of the
Issuers capital stock that is issued and outstanding.
Under the Stockholder Agreement, after the Closing Date, Merrill Lynch is prohibited from
taking part in soliciting, negotiating with, providing information to, or making any statement or
proposal to any person with respect to, or making any public announcement with respect to, among
other things, any acquisition which would result in Merrill Lynch holding more than the Merrill
Ownership Cap or any restructuring or similar transaction with respect to the Issuer or any of its
controlled affiliates. Further, under the Stockholder Agreement, several specified actions,
including any merger of the Issuer, any amendment of the Issuers certificate of incorporation, and
any amendment of the Stockholder Agreement, may not be entered into without prior approval of all
of the independent directors then in office, or at least two-thirds of the directors then in
office. This summary of the Stockholder Agreement does not purport to be complete and is qualified
in its entirety by reference to the Stockholder Agreement, which is attached hereto as Exhibits
7.03 and 7.04, and is incorporated by reference in its entirety into this Item 6.
Pursuant to a Registration Rights Agreement, dated as of September 29, 2006, by and among the
Issuer, ML&Co. and The PNC Financial Services Group, Inc. (the Registration Rights Agreement),
Merrill Lynch will have the ability to demand registration of its Shares and shares of Preferred
Stock, as well as exercise piggyback registration rights if securities of the Issuer are
registered for sale by the Issuer or other of its stockholders, in each case subject to the
restrictions on transfer set forth in the Stockholder Agreement. This summary of the Registration
Rights Agreement does not purport to be complete and is qualified in its entirety by reference to
the Registration Rights Agreement, which is attached hereto as Exhibit 7.05 and is
incorporated by reference in its entirety into this Item 6.
Item 7. Material to be Filed as Exhibits
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Exhibit |
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Description |
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7.01. |
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Joint Filing Agreement, dated as of October 10, 2006, by and among Merrill
Lynch & Co., Inc., Merrill Lynch Investment Management, L.P., Fund Asset
Management, L.P., Princeton Administrators, L.P., Merrill Lynch Group, Inc.,
Princeton Services, Inc., and Merrill Lynch, Pierce, Fenner & Smith
Incorporated. |
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Exhibit |
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Description |
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7.02 |
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Transaction Agreement and Plan of Merger, by and among Merrill Lynch & Co.,
BlackRock, Inc., New Boise, Inc., and Boise Merger Sub, Inc., dated as of
February 15, 2006 (incorporated herein by reference from Annex A to New
BlackRock, Inc.s Amendment No. 2 to its Registration Statement on Form S-4
(File No. 333-134916), filed on August 9, 2006). |
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7.03 |
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Stockholder Agreement, dated as of February 15, 2006, by and among Merrill
Lynch & Co., Inc. and New BlackRock, Inc. (incorporated herein by reference
from Annex C to New BlackRock, Inc.s Amendment No. 2 to its Registration
Statement on Form S-4 (File No. 333-134916), filed on August 9, 2006). |
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7.04 |
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Amendment No. 1, dated as of September 29, 2006, to the Stockholder Agreement,
dated as of February 15, 2006, by and among Merrill Lynch & Co., Inc. and New
BlackRock, Inc. |
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7.05 |
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Registration Rights Agreement, dated as of September 29, 2006, by and among New
BlackRock, Inc., Merrill Lynch & Co., Inc. and the PNC Financial Services
Group, Inc. (incorporated herein by reference from the Issuers Registration
Statement on Form S-8 (File No. 333-137708), filed on September 29, 2006). |
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7.06 |
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Power of Attorney, dated October 9, 2006, relating to Merrill Lynch Group, Inc. |
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Page 14 of 26 |
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
Dated: October 10, 2006
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MERRILL LYNCH & CO., INC. |
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By:
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/s/ JONATHAN N. SANTELLI |
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Name:
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Jonathan N. Santelli |
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Title:
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Assistant Secretary |
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MERRILL LYNCH INVESTMENT MANAGERS, L.P. |
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By: Princeton Services, Inc., its General Partner |
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By:
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/s/ JONATHAN N. SANTELLI |
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Name:
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Jonathan N. Santelli |
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Title:
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Vice President and Secretary |
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FUND ASSET MANAGEMENT, L.P. |
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By: Princeton Services, Inc., its General Partner |
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By:
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/s/ JONATHAN N. SANTELLI |
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Name:
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Jonathan N. Santelli |
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Title:
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Vice President and Secretary |
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PRINCETON ADMINISTRATORS, L.P. |
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By: Princeton Services, Inc., its General Partner |
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By:
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/s/ JONATHAN N. SANTELLI |
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Name:
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Jonathan N. Santelli |
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Title:
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Vice President and Secretary |
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MERRILL LYNCH GROUP, INC. |
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By:
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/s/ JONATHAN N. SANTELLI |
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Name:
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Jonathan N. Santelli |
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Title:
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Authorized Person |
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PRINCETON SERVICES, INC. |
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By:
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/s/ JONATHAN N. SANTELLI |
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Name:
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Jonathan N. Santelli |
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Title:
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Vice President and Secretary |
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MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED |
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By:
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/s/ JONATHAN N. SANTELLI
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Name:
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Jonathan N. Santelli |
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Title:
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Assistant Secretary |
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CUSIP No. US09247X1019
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Page 16 of 26 |
SCHEDULE I-A
The name and present principal occupation or employment (and the name, principal business and
address of any corporation or other organization in which such employment is conducted) of each
director of ML&Co. are set forth below.
All directors listed below are United States citizens, except for David K. Newbigging who is a
U.K. citizen and Judith Mayhew Jonas who is both a U.K citizen and New Zealand citizen.
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Name |
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Present principal occupation or employment |
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(and the name, principal business and address of any corporation or other |
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organization in which such employment is conducted) |
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Armando M. Codina
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President and Chief Executive Officer of Flagler Development Company
Codina Group |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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Virgis W. Colbert
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Corporate Director |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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Jill K. Conway
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Visiting Scholar, Massachusetts Institute of Technology |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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Alberto Cribiore
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Managing Partner, Brera Capital Partners |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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John D. Finnegan
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Chairman of the Board of The Chubb Corporation |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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Judith Mayhew Jonas
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Corporate Director |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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David K. Newbigging
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Chairman of the Board of Talbot Holdings Limited |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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Aulana L. Peters
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Corporate Director |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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Page 17 of 26 |
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Joseph W. Prueher
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Corporate Director, Consulting Professor to the Stanford-Harvard
Preventive Defensive Project |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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Ann N. Reese
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Co-Founder and Co-Executive Director of the Center for Adoption Policy |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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Charles O. Rossotti
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Senior Advisor to The Carlyle Group |
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c/o Corporate Secretarys Office |
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222 Broadway, 17th Floor |
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New York, New York 10038 |
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E. Stanley ONeal
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Chairman of the Board, President and Chief Executive Officer |
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4 World Financial Center |
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250 Vesey Street |
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New York, New York 10080 |
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Page 18 of 26 |
SCHEDULE I-B
The name and present principal occupation or employment of each executive officer of ML&Co.
are set forth below.
The business address for all the executive officers listed below is 4 World Financial Center,
250 Vesey Street, New York, New York 10080.
All executive officers listed below are United States citizens, except Jeffrey N. Edwards, who
is a citizen of both the United States and the United Kingdom.
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Name |
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Present principal occupation or employment |
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Rosemary T. Berkery
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Executive Vice President; General Counsel |
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Jeffrey N. Edwards
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Senior Vice President, Chief Financial Officer |
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Ahmass L. Fakahany
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Executive Vice President; Chief Administrative Officer |
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Gregory J. Fleming
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Executive Vice President; President, Global Markets and Investment Banking |
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Dow Kim
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Executive Vice President; President, Global Markets and Investment Banking |
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Robert J. McCann
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Executive Vice President; President, Vice Chairman, Global Private Client |
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E. Stanley ONeal
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Chairman of the Board, President and Chief Executive Officer |
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Page 19 of 26 |
SCHEDULE II-A
The name and present principal occupation or employment of each director of ML Group are set
forth below.
The principal business address of each director is c/o Merrill Lynch & Co., Inc., 4 World
Financial Center, New York, NY 10080.
All directors listed below are United States citizens
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Name |
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Present principal occupation or employment |
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Richard B. Alsop
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Senior Vice President, Corporate Law |
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Allen G. Braithwaite III
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Managing Director, Global Treasury |
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Kevin D. Dolan
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Senior Vice President, Corporate Tax |
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Kathleen Skero
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Managing Director, Merrill Lynch Finance |
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Page 20 of 26 |
SCHEDULE II-B
The name and present principal occupation or employment of each executive officer of ML Group
are set forth below.
The business address for all the executive officers listed below is c/o Merrill Lynch & Co.,
Inc., 4 World Financial Center, New York, NY 10080.
All executive officers listed below are United States citizens.
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Name |
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Present principal occupation or employment |
Richard B. Alsop
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Vice President |
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D. Kevin Dolan
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Chairman of the Board |
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Kathleen Skero
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President |
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Page 21 of 26 |
SCHEDULE III-A
The name and present principal occupation or employment of each director of Princeton Services
are set forth below.
The principal business address of each director is Merrill Lynch & Co., Inc., 4 World
Financial Center, New York, NY 10080.
All directors listed below are United States citizens.
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Name |
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Present principal occupation or employment |
John J. Fosina
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Managing Director, Merrill Lynch Investment Managers |
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Carlos M. Morales
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Senior Vice President, Office of General Counsel |
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Page 22 of 26 |
SCHEDULE III-B
The name and present principal occupation or employment of each executive officer of Princeton
Services are set forth below.
The business address for all the executive officers listed below is c/o Merrill Lynch & Co.,
Inc., 4 World Financial Center, New York, NY 10080.
All executive officers listed below are United States citizens.
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Name |
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Present principal occupation or employment |
John J. Fosina
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President |
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Carlos M. Morales
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Senior Vice President |
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Page 23 of 26 |
SCHEDULE IV-A
The name and present principal occupation or employment of each director of MLPF&S are set
forth below.
The principal business address of each director is 4 World Financial Center, New York, NY
10080.
All directors listed below are United States citizens.
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Name |
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Present principal occupation or employment |
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Candace E. Browning
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Senior Vice President, MLPF&S |
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Gregory J. Fleming
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Executive Vice President, MLPF&S |
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Dow Kim
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Executive Vice President, MLPF&S |
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|
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Robert J. McCann
|
|
Chairman of the Board & Chief Executive Officer, MLPF&S |
|
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Carlos M. Morales
|
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Senior Vice President, MLPF&S |
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CUSIP No. US09247X1019
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Page 24 of 26 |
SCHEDULE IV-B
The name and present principal occupation or employment of each executive officer of MLPF&S
are set forth below.
The business address for all the executive officers listed below is 4 World Financial Center,
New York, NY 10080.
All executive officers listed below are United States citizens.
|
|
|
Name |
|
Present principal occupation or employment |
|
|
|
Rosemary T. Berkery
|
|
Executive Vice President |
|
|
|
Candace E. Browning
|
|
Senior Vice President |
|
|
|
Ahmass L. Fakahany
|
|
Executive Vice President |
|
|
|
Gregory J. Fleming
|
|
Executive Vice President |
|
|
|
Dow Kim
|
|
Executive Vice President |
|
|
|
Robert J. McCann
|
|
Chairman of the Board, Chief Executive Officer |
|
|
|
Carlos M. Morales
|
|
Senior Vice President |
|
|
|
Joseph F. Regan
|
|
First Vice President, Chief Financial Officer |
|
|
|
CUSIP No. US09247X1019
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Page 25 of 26 |
SCHEDULE V
The aggregate number and percentage of the Issuer stock beneficially owned by each of the
persons listed on Schedules I-A, II-A, II-B, III-A, III-B, IV- A, and IV-B hereto are set forth
below:
Gregory J. Fleming beneficially owns 95 Shares, but does not have the power to dispose or
direct the disposition of such Shares.
Ahmass Fakahany beneficially owns 75 Shares, but does not have the power to dispose or direct
the disposition of such Shares.
Kevin D. Dolan beneficially owns 55 Shares, but does not have the power to dispose or direct
the disposition of such Shares.
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CUSIP No. US09247X1019
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Page 26 of 26 |
SCHEDULE VI
Merrill Lynch engaged in the following purchases and sales of the Shares during the 60-day
period prior to the Closing Date.:
|
|
|
|
|
|
|
|
|
|
|
Description of |
|
Purchase (P)/ |
|
|
|
|
|
|
|
|
Security |
|
Sale(S) |
|
Entry Date |
|
Settle Date |
|
Quantity |
|
Trade Price |
Common Stock
|
|
P
|
|
8/31/2006
|
|
9/6/2006
|
|
20
|
|
130.15 |
Common Stock
|
|
P
|
|
8/31/2006
|
|
9/6/2006
|
|
100
|
|
130.15 |
Common Stock
|
|
P
|
|
8/31/2006
|
|
9/6/2006
|
|
100
|
|
130.1532 |
Common Stock
|
|
P
|
|
9/12/2006
|
|
9/15/2006
|
|
100
|
|
134.67 |
Common Stock
|
|
P
|
|
9/12/2006
|
|
9/15/2006
|
|
100
|
|
134.67 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
145.34 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
145.08 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
146.1 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
200
|
|
145.96 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
145.61 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
145.88 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
146 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
146.15 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
145.31 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
146.07 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
100
|
|
145.31 |
Common Stock
|
|
S
|
|
9/14/2006
|
|
9/19/2006
|
|
18
|
|
145.66 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
18
|
|
146.02 |
Common Stock
|
|
S
|
|
9/14/2006
|
|
9/19/2006
|
|
2
|
|
145.67 |
Common Stock
|
|
S
|
|
9/14/2006
|
|
9/19/2006
|
|
18
|
|
145.68 |
Common Stock
|
|
P
|
|
9/14/2006
|
|
9/19/2006
|
|
2
|
|
145.67 |
Common Stock
|
|
S
|
|
9/19/2006
|
|
9/22/2006
|
|
1860
|
|
145.0027 |
Common Stock
|
|
S
|
|
9/19/2006
|
|
9/22/2006
|
|
1860
|
|
145.0027 |
Common Stock
|
|
P
|
|
9/19/2006
|
|
9/22/2006
|
|
1860
|
|
145.0027 |
Common Stock
|
|
P
|
|
9/19/2006
|
|
9/22/2006
|
|
1860
|
|
145.0027 |
Common Stock
|
|
P
|
|
9/19/2006
|
|
9/22/2006
|
|
1860
|
|
145.0027 |
Common Stock
|
|
P
|
|
9/19/2006
|
|
9/22/2006
|
|
1860
|
|
145.0027 |