Investors gave a cool reception to Chase Manhattan Corp.'s deal to buy J.P. Morgan & Co.

Despite cheerleading from Wall Street analysts, shares of both companies fell significantly in Wednesday's trading. Chase closed down $2.125, or 4.02%, at $50.6875, and Morgan slipped $4.25, or 2.29%, to $181.25. Morgan's shares were trading at a 12.4% discount to the announced deal price. Analysts said a selloff in J.P. Morgan shares was to be expected as investors took profits now on Morgan's recent run-up rather than wait for the deal to close. And though many argued that the deal is a good one for the long term, some tied the drop in Chase's shares to a perception that the price was too high and a fear that cultural clashes might slow the companies' integration.

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