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Non-Tech : BANK ONE -- Ignore unavailable to you. Want to Upgrade?

To: Benny Baga who wrote (233)	12/22/1999 4:14:00 PM
From: Neil H	Read Replies (2) \| Respond to of 466

Related Quotes C CMB ONE 54 15/16 74 15/16 33 3/8 -1 1/16 -1/16 +1/16 delayed 20 mins - disclaimer Wednesday December 22, 4:03 pm Eastern Time Analysts Doubt Quick Bank One Sale By DAVE CARPENTER AP Business Writer CHICAGO (AP) -- Bank One isn't likely to be sold anytime soon, analysts said Wednesday, despite this week's departure of the embattled chief executive of the nation's fourth-biggest bank that raised questions about a possible merger. Bank One stock held steady Wednesday after surging more than 11 percent the previous day on news of the shakeup. Shares were up 6 1/4 cents to $33.37 1/2 Wednesday afternoon on the New York Stock Exchange. John McCoy's early retirement, as the bank characterized it Tuesday, came as a relief to many shareholders and left the Midwest banking giant poised for change after a wretched 1999. It also fueled speculation of a merger, though officials have repeatedly said neither the bank nor Bank One's troubled credit-card unit is for sale. The move is ``a clear positive for Bank One,' according to a report issued Wednesday by investment bank Goldman, Sachs & Co. But the next few months will be a key transition period as the board of directors looks for a permanent chief executive officer -- possibly acting CEO Verne Istock -- and ponders whether a sale of its flagging credit-card unit or the entire company is necessary. Slowing growth and missteps at the company's First USA unit were widely viewed as responsible for abruptly ending McCoy's 15-year tenure as CEO and three generations of McCoys at the helm of Bank One. The bank company was headquartered in Columbus, Ohio, until merging with First Chicago last year. First USA, the nation's No. 2 issuer of credit cards after Citibank, once boasted high-flying growth. But its questionable pricing strategy and related headaches were blamed for knocking a half-billion dollars off Bank One earnings this year, helping the stock plummet 47 percent in the past four months. Like others who follow the banking industry closely, Goldman Sachs said the company's first option is almost certain to be to try to overhaul the company from within. That echoes Bank One's position under McCoy and now. ``We believe that the turnaround at the company will take the form of a new management team rather than sale of the company, given, in part, our assumption that the underlying franchise likely has more intrinsic value than that likely offered by potential buyers,' the research firm's report said. But the bank's directors will be under pressure to select a permanent management team soon and produce evidence of a comeback in the next few months. Otherwise, the bank may not remain independent. ``If the situation doesn't improve, I think you're probably looking at an auction in the spring,' said Diane Glossman, a bank analyst for Lehman Brothers in New York. An executive management report is due out next month that is expected to detail the company's strategic plans for future growth. Citigroup (NYSE:C - news), the holding company for Citibank, has been widely cited as the likeliest to be able to afford to buy Bank One, which has more than $260 billion in assets. But Sharada Krishnappa, an analyst for Parker/Hunter Inc., said Citigroup has ``a lot of acquisitions under way right now' and may not bid. A suitor is most likely to come from among the three bigger banks than Bank One, she said -- Citibank, Chase Manhattan or, less likely, Bank of America. Neil