Chase Manhattan Corp, the number two US bank, said Thursday that it has effectively closed its $1.35bn acquisition of investment bank Hambrecht & Quist Group. As of midnight yesterday, Chase has been tendered about 23.4 million shares, or 94.5% of the outstanding H&Q stock. All the shares not tendered in the tender offer will be converted into $50 per share in cash by Friday Chase says. The acquisition gives Chase a solid start in its investment banking plans after failed merger talks with both Merrill Lynch & Co and Morgan Stanley Dean Witter & Co last year.
Although it lacks in sheer size, H&Q is one of the foremost banks in the technology arena, having taken the likes of Apple Computer Inc and Amazon.com Inc public. Many analysts now expect Chase to pursue an acquisition strategy that will bring other smaller firms with unique strengths into the fold as it build an investment banking business – not unlike the way software company Computer Associates International constructed its services business after a failed bid to acquire Computer Sciences Corp.
H&Q will become part of Chase’s Global Investment Bank, headed by James Lee. Daniel Case, formerly chairman and chief executive of H&Q, will retain his position at the Chase H&Q unit and assume the additional title of head of Chase’s global technology group. H&Q will remain headquartered in San Francisco. รก
