Chase Names CEO, Quelling Merger Talk

Chase Manhattan Corp. named William B. Harrison Jr. chief executive and president, a move that signaled the nation’s third-largest bank is backing away from plans to acquire an investment bank. Harrison, 55, succeeds Walter V. Shipley, 63, who will continue as chairman. Thomas G. Labrecque, 60, president and chief operating officer, will retire. All of the changes are effective June 1. The announcement quickly created a buzz among bank watchers because Shipley reportedly had offered the chief executive’s job to the heads of several New York investment banks if they agreed to merge with Chase. “That’s a very interesting development and perhaps indicates that Shipley’s overtures weren’t accepted,” said Joe Haberman, a vice president at A.T. Kearney. Although Shipley reportedly has approached several investment banks--including Merrill Lynch, Morgan Stanley Dean Witter and Goldman Sachs--he told reporters that Chase doesn’t need to make an acquisition. He also denied offering the chief executive’s post as an inducement. Chase stock dropped 19 cents a share to close at $79.38 on the New York Stock Exchange.