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At £800 for the complete build it's a good price just as a Merckx Motorola.
You need to explore the provenance with the seller a bit more.
The attached link will be of interest as its about another of his bikes with frame size and even the son of the pro comments.
http://forums.roadbikereview.com/retro-classic/dag-otto-lauritzen-eddy-merckx-49867.html
D*g O*to Lauritz*n - he seems to be willing to let it go for a little less than £800