Shearson Drops Bid to Buy Hutton

American Express’ brokerage unit, Shearson Lehman Bros., is no longer considering a takeover bid for rival E. F. Hutton, American Express Chairman James D. Robinson III said Friday.

“We are no longer pursuing it,” Robinson said in a Los Angeles interview, noting that Hutton wanted $55 per share, or $1.7 billion--more than the $50 per share, or $1.55 billion, that Shearson reportedly was willing to pay. Robinson also said that Hutton executives made other demands that Shearson considered unreasonable.

Robinson refused to speculate on whether Shearson’s interest in taking over Hutton would revive if the price were reduced.