manhattan may acquire jp morgan for $30 billion
in a move that could end the independence of, arguably,
the most blue chip name of wall street, jp morgan, set up by the legendary financier
j pierpont morgan, us bank, chase manhattan, is said to be in talks with the investment
banking firm for a possible acquisition.
deal for the possible takeover of the investment banking firm by chase, is said
to be valued at $30 billion. speculation about the investment bank's future was
already fuelled when it emerged that mr. sandy warner, its chairman and chief
executive officer, had cancelled an appearance at an investor conference this
the deal, if completed, would
further transform the global financial services industry. it would also be a long-sought
transformation for chase, which has been looking to expand its investment banking
reach, particularly in equities. however, if the deal does fructify, given the
fact that there is enormous amount of overlap between the two firms, in the areas
of fixed income and trading activities, there is likely to be substantial job
losses on the takeover.
while a string
of global banking mergers has fuelled a sharp speculative rise in the value of
jp morgan's stock in the last three months, industry analysts say that chase is
paying too high a price for the acquisition.
of the more prominent recent takeovers of investment banking firms include, ubs's
$12bn acquisition of painewebber, credit suisse first boston's $11.5bn bid for
donaldson lufkin and jenrette, and citigroup's $31.1bn offer for associates first
jp morgan has also been in
the news recently for the resignation of its high profile, and much valued, chief
financial officer, mr. peter hancock .
chase manhattan, which has been on an acquisition spree in the recent past, this
deal would be the biggest. in may, chase bought the beacon group, a mergers and
acquisition boutique, for about $500m, two months after it announced the $7.75bn
purchase of robert fleming, the uk investment bank and asset management business.
a little over a year ago it paid $1.35bn for hambrecht & quist, the west-coast
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