UPDATE 2-Bank of America names business heads

(Adds background to acquisition, regional heads, financial adviser retention efforts and share prices)

NEW YORK, Nov 7 (Reuters) - Many senior Merrill Lynch & Co Inc MER.N investment banking and trading executives will keep their jobs when the company is taken over by Bank of America Corp (BAC.N) later this year, according to an internal memo sent on Friday.

The announcement was the most comprehensive list so far regarding the future for executives at the two companies. Although banks that get acquired typically see their managers laid off, Merrill Lynch has a much bigger and more established investment bank than Bank of America.

Global equities will be led by co-heads Mike Stewart and Tom Patrick, both from Merrill, while global credit products will be led by Gerhard Seebacher, from Bank of America.

The appointments follow a series of senior appointments last month, including Merrill Lynch Chief Executive John Thain, who is heading global banking, securities and wealth management for the combined company.

On Friday, an internal memo said Mike Meyer, another senior Bank of America executive, will take responsibility for sales strategy and day-to-day operational matters. He is a deputy to to Tom Montag, head of sales and trading at Merrill, who the companies said last month will head sales, trading and research.

Merrill executives Steve Zander, Michael Nierenberg and David Sobotka will head the global distressed business, global mortgage products and global proprietary trading, respectively.

David Gu will head global rates and currencies, David Goodman and Rob Jones will co-head global commodities and global research will be led by Candace Browning. All three are from Merrill.

Global capital markets will be headed by Bank of America executive Bruce Thompson. He will report to Montag and Greg Fleming, who will head global corporate and investment banking as announced last month.

Merrill executives Brent Clapacs and David Gu will co-run Europe, the Middle East and Africa, while Yasuhiro Fujiwara and Michael Halloran will co-run Asia and Pacific markets.

The bank is also taking steps to retain Merrill's 18,600 financial advisers. It announced compensation packages and, earlier this week, said it would not sue advisers that leave as long as they follow an industry protocol regarding leaving brokerages.

Merrill shares finished up 3.2 percent on Friday at $16.75, while Bank of America shares were down 1.84 percent at $20.49. (Reporting by Elinor Comlay and Jonathan Stempel; Editing by Andre Grenon)