In Brief: Chase Buys Mellon's Corporate Trust Unit

Chase Manhattan Corp. has signed a definitive agreement to buy the corporate trustee and agency business of Mellon Bank for an disclosed price.

Under the agreement, expected to close in the fourth quarter, about 6,600 accounts for which Mellon now serves as trustee or agent will be transferred to Chase Global Trust.

The portfolio consists mostly of municipal and corporate debt securities. This acquisition, in addition to Chase's recent acquisition of the corporate and municipal trust business of Compass Bank of Birmingham, Ala., is consistent with Chase's strategy to build its corporate trust business nationwide.

Chase Global Trust's primary U.S. locations are in New York, California, Texas, and Alabama. It plans to maintain local presences in Cleveland, Pittsburgh, Philadelphia, and several other cities where Mellon currently has corporate trust offices. The bank also plans to offer jobs to most of Mellon's administrative and sales employees.

The deal does not affect Mellon's substantial noncorporate trustee fiduciary business.

In 1995, the two banking companies formed a joint venture, ChaseMellon Shareholder Services, the nation's largest company to focus on providing stock-transfer and related shareholder services to publicly held companies.