13 september 2000

chase manhattan may acquire jp morgan for $30 billion
new york: 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.

the 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 week.

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.