Robertson Stephens Mulls Purchase Offers
BankAmerica Corp.’s investment bank, BancAmerica Robertson Stephens & Co., is seriously considering several acquisition offers that could result in a deal as early as next week, sources close to the San Francisco-based investment bank said.
While several major banks--including BankBoston Corp., J.P. Morgan & Co. and possibly some foreign banks--are among the potential bidders, several investment banking firms such as Credit Suisse First Boston Corp. and Donaldson, Lufkin & Jenrette Inc. are also possibilities, sources familiar with the situation said.
Last month, BankAmerica said it would sell the San Francisco-based investment bank after agreeing to merge with NationsBank Corp., which already owns Robertson Stephens’ cross-town rival Montgomery Securities. Because the investment banks each have a strong emphasis on the computer technology and biotechnology/health-care sectors, it would make more sense to sell than combine, analysts have said.
BankAmerica acquired Robertson Stephens last year for $540 million.
Cheryl Popp, spokeswoman for Robertson Stephens, said Wednesday that the firm has received more than 20 inquiries since BankAmerica announced the unit was for sale, but would not comment on the possible bidders.
Robertson Stephens, with about 900 employees, achieved early success financing the growth of high-tech companies in Silicon Valley. With current clients such as Sun Microsystems Inc., Lotus Development Corp. and America Online Inc., the firm would be attractive to a commercial bank or investment bank eager to tap the lucrative technology market. Robertson is also strong in health care and biotech.
BankAmerica bought Robertson as part of the wave of mergers that continues to sweep the financial services industry. Banks are rushing to get into the brokerage business as the wall between commercial banking and the securities industry crumbles.
Montgomery Securities, Alex, Brown & Sons, and Cowen & Co. were all recently purchased by major banks or investment firms.
Investment banking sources said the price for Robertson Stephens could surpass $600 million.
