Chase to Buy Hambrecht & Quist for $1.35 Billion
Tuesday, September 28, 1999
Sept. 28, 10:34 A.M. - Chase Manhattan Corp. said it has agreed to acquire the San Francisco-based investment bank Hambrecht & Quist for $50 per share, or $1.35 billion.
The deal, which Chase expects to complete by the end of the year, would help the bank ramp up its equity-underwriting business.
"Our goal is to offer the right financial relationships for companies in the new economy - from venture-capital stage to IPO to mature company," said William B. Harrison, Jr., president and chief executive officer of Chase.
He added, "This is an important step for Chase in developing a public equities practice in a way that has a positive return to our shareholders."
Under terms of the deal, which has been approved by the boards of directors of both companies, Hambrecht & Quist will take the Chase name, but it will continue to be headquartered in San Francisco.
Chase plans to establish a $200 million pool of its stock to be used for retaining key Hambrecht & Quist employees.
Hambrecht & Quist would become part of Chase Securities' investment banking arm, which is headed by vice chairman James B. Lee, Jr.
Hambrecht & Quist's chairman and chief executive officer, Daniel H. Case 3d, would become chairman and chief executive officer of Chase Securities West and head of the bank's Global Technology Group.
----
We will see how this impacts H&Q's coverage of CheckFree. Hopefully, no effect...
-Sam |
