A Merrill Lynch sign is seen in Toronto, April 29, 2008. REUTERS/Mark Blinch

(Reuters) - Bank of America Corp and Merrill Lynch & Co are in merger talks, the Wall Street Journal reported Sunday, citing people familiar with the matter.

The Merrill talks come amid a scramble to sort out the potential liquidation of Lehman Brothers Holdings Inc, according to the report.

Bank of America turned its attention to Merrill after considering the acquisition of Lehman, but talks failed to result in a deal, the report said.