MERRILL LYNCH &lt;MER> IN TALKS ON CANADA PURCHASES

  Merrill Lynch and Co Inc is holding
  talks on acquiring Canadian brokerage firms, a company
  spokesman told Reuters.
      He said one of the firms with which Merrill Lynch is
  negotiating is &lt;Burns Fry Corp> of Toronto, which has already
  received an offer from Security Pacific Corp's &lt;SPC> 83 pct
  owned &lt;Hoare Govett Ltd> London-based brokerage unit.  The
  Hoare Govett bid is valued at about 210.4 mln U.S. dlrs.
      The spokesman said the talks are the result of a change in
  Ontario securities laws that takes effect June 30.
      Currently, companies outside the Canadian securities
  industry are prohibited from owning more than 10 pct of a
  Canadian broker.  On June 30, 1987, foreign brokers will be
  allowed to own up to 50 pct of Canadian brokers, and the
  percentage will rise to 100 pct a year later.
  

