Merrill May Buy Hambrecht & Quist

Merrill Lynch & Co is in advanced talks to buy San Francisco-based technology investment bank Hambrecht & Quist Group Inc for more than $1 billion, the Wall Street Journal reported Friday. It said the two parties still have not reached agreement on a final price for Hambrecht & Quist, which it said many analysts think is overvalued.

Quoting people familiar with the situation, the newspaper said that while the talks could fall apart at any point, the acquisition, if completed, would follow Merrills decision last month to buy British money manager Mercury Asset Management PLC for $5.3 billion.

An acquisition of Hambrecht & Quist would give the nations biggest brokerage firm a foothold in the booming technology-banking business.

 

Merrill has never been regarded as a powerhouse in technology banking, although it is known for its broad banking presence, it said.

Hambrecht & Quist is one of the best-known California technology investment boutiques that have gained prominence with the growth in recent years of the Silicon Valley technology hub, the Journal said.