|
Merrill up on deal rumors
|
 |
March 24, 1998: 8:53 p.m. ET
Market buzzing with rumors of a merger with Chase Manhattan
|
NEW YORK (CNNfn) - Shares of Merrill Lynch & Co. Inc. rose sharply Tuesday amid ongoing speculation the brokerage is a takeover target, analysts said.
In recent weeks the market has been filled with speculation that Chase Manhattan Corp. (CMB) may be looking to buy Merrill.
The bank plans to expand in equities research in the next three years, either by building or acquiring businesses, Chase President and Chief Operating Officer Thomas Labrecque said Tuesday.
"There is continued takeover speculation surrounding the entire group," said Michael Flanagan, a brokerage analyst at Financial Service Analytics. "I suspect that is the primary reason moving the stock."
Chase's Labrecque would not comment on rumors that Chase had made approaches to firms such as Merrill, J.P. Morgan & Co. Inc. (JPM), and Goldman Sachs about a business combination.
Shares of Merrill (MER) closed at 87 a share, up 4-1/8. Some analysts have suggested Merrill could fetch as much as $100 a share. Chase closed at 134-3/16, up 1-1/2.
"Merrill is certainly one of the most attractive of the brokerage firms in the industry and it would be a nice set with Chase on paper in terms of product line," said Flanagan. "Merrill is at the top of the rumor list relative to Chase."
Labrecque said Chase had identified equities research and underwriting as products customers want and need.
"My guess would be that Chase would buy somebody and not try to grow it internally, which could be more expensive," said Perrin Long, an independent brokerage analyst. 
-- from staff and wire reports
|
|
|
|
|
|
Merrill Lynch
Chase
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
