Robertson Stephens (NYSE:BAC) narrows suitors' list
Reuters, Friday, May 22, 1998 at 16:21
NEW YORK, May 22 (Reuters) - Bidding for Robertson
Stephens, the investment banking arm of BankAmericaCorp
(NYSE:BAC), was heading into the final round Friday with a deal
seen possible as soon as next week. "We've narrowed the field of contenders from over 20 original inquiries," a Robertson Stephens spokeswoman said. "But we do not have a deal in place yet." The spokeswoman declined to either identify the firms on Robertson Stephen's short list or to reveal the number of finalists.
But the Boston rumor mill on Friday pointed to BankBoston Corp. (NYSE:BKB) as the leader in the bidding for Robertson Stephens, with an offer valued at about $800 million. The latest rumors come on top of recent published reports saying BankBoston has emerged as a leading contender. By bidding on Robertson Stephens, the bank appears to be keen on making good on recent setbacks in its efforts to expand.
Robertson Stephens, which was bought by BankAmerica last
October for $540 million, put itself on the block once again after its parent agreed to merge with NationsBank Corp. (NYSE:NB) in April. Robertson Stephen's clients balked at the prospect of the firm in effect merging with cross-town rival Montgomery Securities --which is owned by NationsBank-- and BankAmerica gave the firm the green light to look for a buyer.
BankBoston is said to have submitted a failed bid for second-tier investment bank Cowen & Co., and, according to reports, to have failed in merger talks with Fleet Financial Group Inc. (NYSE:FLT), another big Northeastern bank. Cowen ended up being bought by France's Societe Generale (SBF:SOGN) in February.
BankBoston Chief Executive Charles Gifford told reporters earlier this month the bank remained open to deals. But he also said the bank would focus on expanding overseas, particularly in Latin America.
Another likely contender for Robertson Stephens includes CS Group's (ZSE:CSGZ.N) Credit Suisse First Boston, whose chief executive, Allen Wheat, told reporters in March the firm would consider an acquisition in high tech investment banking, Robertson Stephen's specialty, if the right deal came along. A BankBoston Corp spokeswoman and a CS First Boston Corp spokesman both declined to comment on market rumors. A report in Friday's American Banker said a final deal could materialize as early as next week. 859-1717--))
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