Merrill Lynch shares jump on asset sale rumors

NEW YORK (Reuters) - Shares of Merrill Lynch & Co Inc (MER.N: Quote, Profile, Research) rose nearly 6 percent on Thursday morning amid rumors the largest brokerage in the world was looking to sell off assets.

Selling assets could shore up Merrill Lynch's balance sheet, which would please investors shaken by a recent run on the bank at Bear Stearns Cos BSC.N once the fifth-largest U.S. investment bank.

"There has been some rumors out there that Merrill might consider selling some assets which would be perceived as a positive," said William Lefkowitz, options strategist at brokerage firm vFinance Investments.

A spokeswoman for Merrill Lynch declined to comment, citing a policy against commenting on rumors and speculation.

The jump comes a day after Merrill Lynch shares fell 11 percent, after the investment bank said it was suing XL Capital Assurance Inc, a unit of Security Capital Assurance Ltd (SCA.N: Quote, Profile, Research), to prevent the bond insurer from backing out of credit guarantee contracts.

Merrill Lynch shares rose to $43.84 on the New York Stock Exchange.

(Reporting by Dan Wilchins; Additional reporting by Doris Frankel; Editing by Brian Moss)