State Street's Stock Surges on Talk of Merger with Bank of New York

By Elstein, Aaron | American Banker, January 6, 1997 | Go to article overview

State Street's Stock Surges on Talk of Merger with Bank of New York


Elstein, Aaron, American Banker


Bank of New York Co.'s plan to increase its investment in State Street Boston Corp. sent the latter's stock price up 13% Friday as analysts contemplated a potential merger of two leaders in the securities processing businesses.

The market looked beyond the official words of Bank of New York that the doubling of its stake, to 9.9%, would be just for investment

As industry experts focused on the compatibility of the companies -- a merger would bolster Bank of New York's No. 1 position in securities processing -- State Street's stock rose $8 a share, to $71, on 6.5 times its average daily trading volume.

Bank of New York closed up 87.5 cents, to $34.125.

Their still highly speculative merger would be a seismic event in the rapidly consolidating securities processing specialty. The companies have a combined 30% to 40% of that market, said Octavio Marenzi, a consultant at the Tower Group in Newton, Mass.

"If either company were to consider who would make a perfect marriage, this is who they would pick," said George Salem, bank analyst at Gerard, Klauer, Mattison & Co., who Friday morning issued a report saying that a merged entity could reduce costs by 40%.

Shortly after Bank of New York's announcement after the stock market closed Thursday, State Street, the third-largest securities processor, issued a statement that it planned to remain independent.

David Berry of Keefe, Bruyette & Woods Inc. said Bank of New York's position in State Street, pending regulatory approvals, would exceed $500 million -- a sum that should not be taken lightly. He viewed the move as more significant than the "stake-out positions" of under 5% that Bank of New York had in some regional bank and, to this point, in State Street. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

State Street's Stock Surges on Talk of Merger with Bank of New York
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.