A Bid For Mellon Bank May Get Nasty
THE BANK DEALS JUST KEEP COMING. On Apr. 22, Bank of New York offered to pay $24 billion for Pittsburgh-based Mellon Bank. The bid came after merger discussions between the two failed last year. In a statement, Mellon Chairman Frank Cahouet said the bank was not for sale. But while BNY Chairman Thomas Renyi wrote in a letter to Cahouet that he would only pursue a consensual deal, analysts believe the Mellon refusal may not be the end. BNY is one of the few banks with experience in hostile deals, having won Irving Bank in 1988 after a long fight. "This could be a bit of a battle," says Janney Montgomery Scott analyst Claire Percarpio. Mellon stock rose 8 1/8, to 78, suggesting investors think some deal is likely.