FleetBoston Buying Specialist Firm
BOSTON (AP) _ FleetBoston Financial Corp. has agreed to buy M.J. Meehan and Co. in a deal that would create the largest specialist firm on the New York Stock Exchange in terms of common stock listings.
Specialists are the firms that execute floor trades of specific stocks on exchanges. If the deal is approved by the NYSE and the Federal Reserve, Fleet would add 119 common stocks for which Meehan is the specialist to the 314 it already trades.
Meehan will be combined with Fleet Specialists, a division of Fleet Securities Inc. The new company would be named Fleet Meehan Specialists. The combined company would trade 59 of the 250 most active stocks and eight of the 30 that comprise the Dow Jones industrial average.
Terms of the deal, which is expected to close in the fourth quarter, were not released. The Wall Street Journal reported Tuesday that Fleet would pay about $200 million for Meehan.
M.J. Meehan chief executive officer Terence S. Meehan will become chairman of Fleet Meehan Specialists. Current Fleet Specialist chairman Christopher C. Quick will become chief executive officer of Fleet Meehan, and Fleet Specialist president Myles Gillespie will become president.