Wall St web bull takes the package

HENRY Blodget, infamous internet analyst and one of the best-known names on Wall Street, has taken advantage of the Merrill Lynch voluntary redundancy scheme.

The man, many of whose recommendations proved seriously overoptimistic as the internet bubble burst, is walking away with about $2m (£1.4m).

Blodget, 35, joined the bank in the late 1990s and at the height of his fame could move markets with his share buy notes. In 1998 he predicted that shares in online bookseller Amazon.com, which were then trading at $240, would rise beyond $400. They briefly did but are now changing hands at $9.47.

His forecasts also brought legal trouble to Merrill. Earlier this year, Merrill paid more than $400,000 to settle allegations that overly bullish research from Blodget caused a New York paediatrician to lose $500,000 earmarked for his daughter's college tuition.

Merrill said Blodget's resignation was not due to pressure from clients or management. The investment bank has offered voluntary redundancy to 50,000 staff in a bid to slash costs.

Blodget is thought to have earned at least $1.5m last year and would have taken home a similar package in 1999. Blodget recently married and wants to spend more time with his wife and on a book he is writing about the internet revolution.

Response to Merrill's voluntary redundancy offer, emailed last month, was initially lacklustre but acceptances poured in at the last minute. Nonetheless, Merrill is expected to have to institute compulsory redundancies as it completes a strategic review in response to tough markets.