Melloncholy

Mellon Bank may have traded one headache for another. On May 20, Bank of New York withdrew its bid for Mellon after Mellon's board nixed BONY Chairman Thomas Renyi's request to meet to discuss the deal. Now, Mellon Chairman Frank Cahouet must appease shareholders as Mellon's stock flags. Since May 6, when it hit 73 1/4, it's down 7%, to 67 3/4. "This puts pressure on Mellon to deliver," says James Schmidt, portfolio manager at John Hancock Funds, a Mellon institutional investor.

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