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To: Sonny Blue who wrote (60573)	6/4/1999 2:55:00 PM
From: Olu Emuleomo	Respond to of 164684

>>Now they added almost $7 billion into their market cap in exchange for 2 more money-losing companies!? <<< Sonny Blue, If YHOO had waited, BCST etc would have demanded more YHOO shares!! (What might be interesting is to see what the BCST shares are worth now in YHOO shares as compared to what they were worth in YHOO shares when they got bought out!)

To: Sonny Blue who wrote (60573)	6/4/1999 10:12:00 PM
From: Glenn D. Rudolph	Respond to of 164684

INTERVIEW-Mellon <MEL.N> chairman eyes cyberspace NEW YORK, June 4 (Reuters) - Mellon Bank Corp. Chairman Martin McGuinn said the regional bank still was hunting for reasonably-priced acquisitions while devoting more resources to its online business, particularly its Internet brokerage arm. The Pittsburgh-based bank, whose various units already were assembling independent Internet strategies, was trying to meld the approaches into one overarching plan, McGuinn told Reuters in an interview. Many U.S. banks and brokers are rushing to offer clients online options, given the phenomenal growth of online trading and the rapid ascendancy of discount Internet brokers like Charles Schwab Corp. <SCH.N> and E*Trade Group Inc. <EGRP.O>. The nation's biggest brokerage firm, Merrill Lynch And Co. Inc. <MER.N>, just announced plans to start full-blown Internet trading as soon as July. Mellon's Internet brokerage, Pacific Brokerage, already is seeing rapid growth and McGuinn said Mellon would send more resources its way. "That is growing unbelievably," McGuinn said. "Last fall we had something like 6,000 trades a day and now we're up to about 12,000 trades a day and the revenues are really quite good." McGuinn said Mellon saw more electronic commerce opportunities between businesses rather than from businesses to consumers at the moment. "We see business-to-business electronic commerce developing much faster than business-to-consumer e-commerce," McGuinn said. "We have several businesses that are spending out a lot of time figuring out how to not whether to use the Internet." But McGuinn also emphasized his interest in acquisitions. "We're very involved in the long-range planning process, and the Internet is a part of that," McGuinn said. "But so is our acquisition strategy, so is our growth strategy as you look outside the United States." Mellon, which spurned a bid from Bank of New York Co. Inc. <BK.N> last year, might consider buying a broker or expanding asset management or trust and custody units, McGuinn said. But prices were high and the right deal was tough to find. The bank, which owns leading mutual fund company Dreyfus Corp. as well as Denver, Co.-based Founders Asset Management, recently refocused itself to concentrate on asset management, custody and private banking, shedding its mortgage and credit card operations and divesting a unit that processed debit card and other electronic payments. It held onto its jumbo mortgage operation that caters to very wealthy clients. "We've been trying to find the right candidate and we can't, for a couple of reasons," McGuinn said. "We have as our objective to get earnings growth in the 12 to 14 percent range and return on equity in the 20 to 22 percent range and as we look at other companies we find there aren't that many who have those same kind of growth and return characteristics, particularly when you factor in the price." McGuinn said Mellon likely would have to expand its brokerage operation, in light of the recent spate of banks buying brokers and competition posed by financial services hybrids like Citigroup Inc. <C.N>, which can offer banking, securities and insurance products from under one roof. "The short answer to the question is yes," McGuinn said when asked if Mellon would need to bolster its broker business. "Whether we do that through organic growth or by acquisitions or a joint venture is something we are looking at." The banker said he was searching outside the United States for deals, either through purchases, joint ventures or alliances. Last year, Mellon took a 75 percent stake in British fund manager Newton Management Ltd., which has about $26 billion in assets. It also has an investment management alliance with Japan's Bank of Tokyo-Mitsubishi as well as pacts in Hong Kong, Brazil and Chile. "We are also looking outside as well," McGuinn said. "We're looking in Europe and elsewhere for acquisition ...