Reports: Merrill's O'Neal out after loss

NEW YORK, Oct. 29 (UPI) -- Merrill Lynch & Co. Chief Executive Officer Stan O'Neal was expected to be ousted following an $8.4 billion write-off, New York media reported.

The 56-year-old executive was negotiating the terms of his forced departure following the write-down related to subprime mortgages and an unauthorized merger approach to rival bank Wachovia Corp., The Wall Street Journal and New York Times reported.

That deal could have handed O'Neal a $250 million separation package if he wasn't chosen to lead the new company, the Times said.

One candidate being considered to replace O'Neal is Laurence Fink, head of BlackRock Inc. asset management firm, which is 49 percent owned by Merrill, the newspapers said.

Another option would keep Gregory Fleming as a Merrill co-president and name Merrill wealth management unit President Robert McCann as co-president, the Times said.

Other contenders may include NYSE Euronext CEO John Thain, himself a former president of Goldman Sachs Group Inc., and Bob McCann, head of Merrill's huge brokerage arm, the Journal said.

A Merrill spokeswoman wouldn't comment on the reports.

Merrill's shares have slumped 30 percent this year.