Merrill Lynch [0] has been beaten up profoundly in the press. Most of the criticism has been pointed at John Thain's several pronouncements that the firm's capital position was solid, which seemed to always precede major capital moves. Now another source of criticism is emerging: his deal-making prowess. Some have questioned the financing Merrill Lynch is providing to Lone Star to buy its CDO portfolio, noting that it amounts to writing a call. The idea is that it has given away the upside while retaining the downside. Fortune now asks why Merrill got so little from its sale of its stake in Bloomberg. It received $110 million in cash for the sale. The rest comes in 10-year and 15-year notes. Merrill is also providing some financing, though the deals are sketchy. Merrill Lynch is not really bargaining from strength. At least we can agree on that.  

For more:
- here's the Fortune article [1]