MERRILL LYNCH<MER> CANADA MULLS BUYING BROKER Merrill Lynch Canada Inc, wholly owned by Merrill Lynch and Co, is considering acquiring another Canadian securities company as the result of federal and provincial government moves to lift investment dealer ownership restrictions on June 30, according to a published report. "We're talking to a number of people," Merrill Lynch Canada deputy chairman E. Duff Scott told The Toronto Star. "Whether we're going to do something, I don't know," he said. A Merrill Lynch Canada spokesman declined to comment on the newspaper report when queried. Scott did not disclose which investment dealers Merrill Lynch Canada was considering acquiring, but the Toronto Star quoted unidentified industry sources as saying serious discussions have already been held with Burns Fry Ltd. Burns Fry chairman Jack Lawrence told the newspaper the investment dealer has not made a final decision, but was examining "three or four alternatives." Discussions between brokers about possible mergers is to be expected pending industry deregulation, one investment industry source, who asked not to be named, told Reuters. "It's silly not to take a look (at making a merger or acquisition). If you're a businessman, you have to take a look," the industry source said. Under federal and provincial government regulations expected to be in place by June 30, banks, trust companies and foreign companies will be allowed to acquire existing investment dealers or establish their own securities subsidiaries.