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'Chase'ing Merrill Lynch?
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March 19, 1999: 8:06 a.m. ET
Brokerage seen as latest partner for nation's 2nd-largest bank, report says
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NEW YORK (CNNfn) - Chase Manhattan Corp. and Merrill Lynch are considering joining forces in what would be another major consolidation among financial service giants, according to a published report.
Forbes magazine, in its April 5 issue due on newsstands Monday, says it has information that a deal is under review between Merrill (MER), the nation's largest brokerage, and Chase (CMB), the nation's second largest banking company. Among the information is a Chase income statement on which Merrill executives have written comments about a aspects of a possible deal.
The magazine said Merrill Lynch wouldn't confirm that a deal with Chase is imminent. It quotes Merrill Lynch chief executive David Komansky as saying "I feel strongly that we are not paid as a management team to stay independent, we're paid to create value."
Forbes says Merrill is dwarfed in market capitalization by global investment banks that it sees as its rivals: Citigroup, Credit Suisse, UBS AG and Morgan Stanley Dean Witter. A deal with Chase would bolster that status.
The report is only the latest piece of merger speculation for Chase, which appears eager to link with an investment bank or brokerage. At various times, J.P. Morgan (JPM), Goldman Sachs, and Morgan Stanley Dean Witter (MWD) have been seen as possible partners. All have strong underwriting business, which Chase lacks.
Shares in both companies rose Thursday. Merrill climbed 3-3/ 4 to 92-1/8, while Chase gained 1-1/ 2 to 87-7/8. 
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Chase
Merrill Lynch
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