It was, after all, his strategy of increasing risk, particularly in the fixed income area that resulted in a recent write down for the third quarter of $8.4 billion. Analysts expect a further write down in the fourth quarter. Merrill shares surged 8.5 percent on Friday -- their biggest single day move in five years -- on reports that O'Neal, 56, would be replaced. Members of Merrill's board apparently became angry when they learned O'Neal had floated a merger proposal with U.S. bank Wachovia without their knowledge, The New York Times reported on Friday.