The Chase Manhattan Corp. has agreed to purchase West Coast investment bank Hambrecht & Quist in a stock deal worth $1.35 billion or about $50 per share, the New York company announced today. The acquisition should be completed by the end of the year.

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The move extends Chase's range of products "in the highest growth sector of the US economy," in media, telecommunications, information technology and the Internet, said William Harrison, Jr., president and CEO of Chase.

"Our goal is to offer the right financial relationships for companies in the new economy---from venture capital stage to IPO to mature company," said Harrison.

Hambrecht & Quist will assume the name Chase Securities West and continue to be headquartered in San Francisco. As a part of the purchase contract, Chase will establish a $200 million retention pool in Chase stock in order to keep key H&Q management onboard, payable over four years.

"In the last five years, Hambrecht & Quist's revenue and income have increased fivefold," said Daniel Case III, chairman and chief executive officer of Hambrecht & Quist. "Hambrecht & Quist is choosing to partner from strength, and we believe we have chosen the strongest possible partner. I am excited about our planned 'global capability, local delivery' approach to integrating our businesses and serving our clients."

Case will become chairman and chief executive officer of the new Chase Securities West and head of Chase's Global Technology Group.

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