(September 12 – 17:00 ET) – The New York Times is reporting that Chase Manhattan is set to acquire Wall Street rival J.P. Morgan.
The deal is expected to be announced soon, possibly as soon as tomorrow. The newspaper says that the pair are in “serious talks”, citing “an executive close to the deal”. Chase and J.P. Morgan both declined to comment.
The deal would likely put a US$30 billion price tag on J.P. Morgan. Earlier German banking giant Deutsche Bank AG was tipped as Morgan’s likely acquiror. While Chase is frequently tipped as a possible buyer, with brokerage giant Merrill Lynch & Co. Inc. often cited as the target.
The deal will put Chase into the same league as Merrill, Goldman Sachs and Morgan Stanley Dean Witter. Yesterday Goldman Sachs bought market specialist Spear, Leeds & Kellogg.
Ever since UBS AG bought PaineWebber earlier this year, mid-sized brokerage firms have been seen as prime takeover targets on Wall Street. The pressure intensified when Credit Suisse First Boston grabbed Donaldson, Lufkin & Jenrette earlier this month. In the past couple of days most of the speculation has focussed around J.P. Morgan, although Lehman Brothers and Bear Stearns are also seen as juicy targets.
-IE Staff