Fed Approves Chase-J.P. Morgan Merger
Chase Manhattan Corp., the No. 2 U.S. bank, won approval from the Federal Reserve Board to buy rival J.P. Morgan & Co., a $28.6-billion acquisition that would unite two of the oldest U.S. banks. The New York state banking board, which has yet to approve the merger, is scheduled to meet Thursday. A shareholder meeting for both companies has been set to approve the merger on Dec. 22. Chase offered 3.7 of its shares for each of J.P. Morgan’s, valuing the fifth-largest U.S. bank at $157.25 a share based on Chase’s closing price. That’s down from $207 per share when the purchase was announced. In New York Stock Exchange trading, Chase rose $2.50 to close at $42.50, and J.P. Morgan rose $9.50 to close at $156.75. The merged company is planned to open Jan. 2 under the name J.P. Morgan Chase & Co.