Bid for Mellon Lifts Bank Stocks

Bank stocks roared on the prospect that hostile takeover battles will join friendly mergers as tactics in the current consolidation frenzy.

Bank of New York Co.'s refusal to be rebuffed by Mellon Bank Corp. sent shares of Mellon up 8.125, to $78 as investors bet on a resulting battle, or at least an auction.

Among other banks in the takeover spotlight, Crestar Financial Corp. rose $1.9375, to $61.0625; Fleet Financial Group $1.9375, to $89.8125; and J.P. Morgan & Co. $2.5625, to $142.625. PNC Bank Corp. was up $2.375, to $62.75, and Wells Fargo & Co. $5.125, to $380.125.

The Standard & Poor's bank index rose 1.53%, and the Dow Jones industrial average - which includes J.P. Morgan - dipped 0.09%. The Nasdaq bank index increased by 1.35% and the S&P 500 was up 0.34%.

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