Barclays Bank (NYSE:BCS) moved up over 4% early in today's session on comments made by Merrill Lynch suggesting the company may be a takeover target. The Merrill Lynch analyst said that Bank of America (NYSE:BAC) may be very interested in acquiring Barclays Bank, citing more international exposure in fixed-income, high yield, treasury management services, European credit card operations and other banking businesses. Bank of America has said in the past that its next step is to become a global leader in commercial and investment banking. Barclays is very well known internationally in these areas, particularly in corporate investment banking. If the merger went through, it would be the third largest of all time - a deal worth over $117 billion. According to the analyst, the deal would enable BoA to generate savings of up to $3 billion, enabling them to pay a 25% to 30% premium for the company. While there are no guarantees, many people are speculating that this deal could take place sooner than later. Barclays is definitely a stock worth keeping a close eye on.

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