Shares of J.P. Morgan & Co. rose on news that its venture capital division intends to sell 6 million of its 21.1 million shares of Columbia/HCA Healthcare Corp.
Columbia/HCA said J.P. Morgan Capital Corp. had asked the Louisville health care company to register the shares, currently worth about $219 million, for a secondary public offering.
It said the offering probably would be completed in the second quarter.
Most Banks Up Slightly
J.P. Morgan shares were up $1.25 to $64.375. Columbia/HCA stock was off $1.50 to $36.50.
The increase in J.P. Morgan was one of the largest moves among bank stocks on Monday. Most banks were up a fraction, as investors continued to hold off on trades until after a meeting of the open markets committee of the Federal Reserve Board on Tuesday.
Analysts said they expected the Fed to increase interest rates, although they were uncertain about how large the increase would be.
J.P. Morgan acquired the Columbia/HCA stock in connection with a leveraged buyout in 1989 in which it acted as an advisor.
A bank spokesman said J.P. Morgan has reported $631 million of unrealized gains on its shares in Columbia/HCA and about $1 billion of unrealized gains on its entire portfolio of 80 stocks.
Ronald I. Mandle, banking analyst for Sanford C. Bernstein & Co., said there was there little new information about J.P. Morgan in Columbia/HCA's announcement.
Diane B. Glossman of Salomon Brothers Inc., however, raised her 1994 earnings estimate to $8.20 from $7.95, citing the secondary offering.
In other action Monday, First Chicago Corp. stock jumped 62.5 cents to $54.50 on news, released on Friday, that its board had approved a 25% dividend increase - to $2 a year - and expanded its stock repurchase program.
The board authorized the repurchase of up to 4.5 million common shares in addition to the 2.5 million-share repurchase program announced last November.