Chemical, Hanover Rise Sharply
An aggressive buy recommendation from a top Wall Street analyst helped send shares of Chemical Banking Corp. and Manufacturers Hanover Corp. sharply higher Thursday on heavy volume.
Salomon Brothers analyst Thomas Hanley said in a report to clients and company brokers Thursday morning that, "The proposed merger [of Chemical] with Manufacturers Hanover Corp. promises to dramatically enhance the earnings and business outlook for the combined organization."
Chemical's stock was up $1, to $27.125, on volume of more than 2 million shares. Manufacturers was up $1.50, to $30.625, on volume of 1.5 million shares.
Stocks in Sync
Chemical's and Manufacturers' stock are moving together these days, since the pair announced in July that they would merge.
Mr. Hanley was not available for comment.
His report said management's earnings projections were "unduly conservative" at $4.75 to $5 a share, by 1994 to 1995. Mr. Hanley said he projected that the combined companies had the potential to earn $6 to $6.50 a share by 1995.