CoreStates Financial Corp., heavily rumored as a takeover target, has hired Credit Suisse First Boston to advise it on its options, according to Bloomberg News.
The Philadelphia banking company turned down a recent offer from Mellon Bank Corp. and has repeatedly said it wants to remain independent. Michael Martin, head of financial institutions at Credit Suisse First Boston, declined comment, as did Linda Stryker, a CoreStates spokeswoman.
CoreStates shares jumped $4.75, to $72.75, on the report.
"It certainly seems that some of the board, if they did not want to do the Mellon transaction, at least want to look at the company's options," said Lawrence W. Cohn, research director at Ryan, Beck & Co., Livingston, N.J.
"The letter from Capital Research also has to have had an effect," he added, referring to criticism of the Mellon rejection by CoreStates' largest shareholder, Capital Research & Management Co.