Komansky in Line for Top Job at Merrill After Promotion : Securities: The capital markets chief is named president and COO.

NEW YORK — Merrill Lynch & Co. on Wednesday tapped its capital markets head David Komansky as president and chief operating officer in a move that grooms him to be the next chairman of the nation’s largest securities firm.

The positions, which recently have been vacant, previously were held by Daniel P. Tully, who took over as chairman last year. Tully, who is also chief executive, is expected to retire in 1997, when he turns 65.

Komansky, 55, was picked over two other prime Merrill contenders for the position--investment banking head Herbert Allison and private client head John Steffens.

Tully cited Komansky’s variety of experience during his 27 years with the firm as a key qualification. Since 1993, he was executive vice president and head of Merrill’s debt and equity markets group. Earlier, he was national sales director of the private client group and head of the company’s realty division.

“Dave Komansky has had broad experience in all facets of our business, and has proven himself an inspirational and effective leader in every position he has held,” Tully said in a statement.

Komansky also has been a key manager of Merrill’s response to accusations that the brokerage’s investment strategy led to a $2-billion loss in Orange County’s investment fund.

Two weeks ago the county filed a $2-billion lawsuit against Merrill, claiming the brokerage overstepped state law and forced the county into bankruptcy.

Merrill denies the allegations. A spokesman said the timing of Komansky’s selection was unrelated to the Orange County situation.

“There has been a longstanding and methodical process in place for executive succession at Merrill Lynch,” said Paul Critchlow, a Merrill senior vice president in marketing and communications.

Komansky also joins Merrill’s six-member office of the chairman, which has responsibility for building relationships with corporate and institutional clients.