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MERRILL LYNCH SPECIAL VALUE FUND, INC.
SUPPLEMENT DATED FEBRUARY 7, 1994 TO
PROSPECTUS DATED JULY 29, 1993
At the 1993 Annual Meeting of Shareholders of the Fund held on September
10, 1993, the shareholders approved the amendment of certain of the Fund's
investment restrictions in order to (i) permit the Fund to seek to increase its
return through the use of options on portfolio securities and to hedge its
portfolio against adverse movements in the equity, debt and currency markets
through the use of various portfolio strategies, (ii) eliminate the prohibition
against the Fund investing more than 20% of its assets in the securities of
foreign issuers and (iii) enable the Fund to invest a higher percentage of its
assets in warrants. For further information regarding these matters see
"Investment Objective and Policies" in the Prospectus and "Investment Objective
and Policies -- Investment Restrictions" in the Statement of Additional
Information.
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The first sentence of the second paragraph set forth under "Initial Sales
Charge Alternative -- Class A Shares" is replaced as follows:
Initial sales charges will be waived for shareholders purchasing
$1 million or more in a single transaction (other than an employer
sponsored retirement or savings plan, such as a tax qualified
retirement plan under Section 401 of the Internal Revenue Code of
1986, as amended (the "Code"), a deferred compensation plan under
Section 403(b) and Section 457 of the Code, other deferred
compensation arrangements, VEBA plans and non-qualified After Tax
Savings and Investment programs maintained on the Merrill Lynch
Group Employee Services system, herein referred to as "Employer
Sponsored Retirement or Savings Plans"), or a purchase by a TMAsm
Managed Trust, of Class A shares of the Fund.
In addition, the disclosure set forth under "Initial Sales Charge
Alternative -- Class A Shares -- Reduced Initial Sales Charges" is amended to
reflect that Class A shares are offered at net asset value to certain Employer
Sponsored Retirement or Savings Plans, provided such plans meet the required
minimum number of eligible employees or required amount of assets advised by the
Fund's investment adviser or any of its affiliates.
Additional information regarding investments by Employer Sponsored
Retirement or Savings Plans may be obtained from your Merrill Lynch financial
consultant.
Code #10055ALL-2
