Drexel Finance Chief Shifted to ‘Junk Bond’ Unit

Drexel Burnham Lambert Inc. has moved its West Coast finance chief, John Kissick, over to work full time in the firm’s “junk bond” department in Beverly Hills, underscoring the probability that he will replace Michael Milken as head of the department when Milken leaves Drexel.

The likelihood that Kissick would be named to succeed Milken if Milken’s legal problems forced him out of the firm was first reported several months ago. Under terms of tentative settlement agreements that Drexel has reached with the federal prosecutors in New York and with the Securities and Exchange Commission, Milken will be required to leave Drexel.

Drexel also announced some related personnel moves, including the appointment of Herbert Bachelor as a vice chairman with responsibility for investment banking and related activities. Bachelor previously was head of corporate finance at Drexel. Bachelor is among the executives Drexel promoted in an effort to retain after the firm’s internally divisive decision to settle with prosecutors and the SEC.

The others include Arthur Bilger, an investment banker at Drexel’s Beverly Hills office; Leon Black, head of mergers and acquisitions, and John Sorte, head of the New York investment banking office. All three were named co-heads of corporate finance, filling Bachelor’s old position. In addition, Bilger was appointed to take Kissick’s place as head of West Coast corporate finance.

Drexel on Monday also said that Arthur S. Kirsch, senior vice president and head of research, had been named director of the firm’s U.S. institutional equity operations. A Drexel spokesman said Kirsch would take over the responsibilities formerly held by Alan Greditor, who had been the firm’s managing director in charge of equity trading. Greditor was killed in an automobile accident in 1988.