AMERICAN EXPRESS <AXP> UP ON SHEARSON RUMORS
American Express Co climbed 2-1/2 to
80-1/8 on rumors the company was about to announce an agreement
to sell 10 pct of its Shearson Lehman Brothers unit to Nippon
bLife Insurance of Japan, traders said.
    Speculation about an impending deal, rumored to be worth
600 mln dlrs, also sent shares of other U.S. brokerages up
sharply. PaineWebber Group Inc <PWJ> gained 1-5/8 to 37-1/8 and
Merrill Lynch and Co Inc <MER> rose 1-3/8 to 42-7/8.
    American Express officials declined comment but cited a
statement it released more than two weeks ago in which it said
it was studying matters of strategic importance.
    American Express officials also pointed out the earlier
statement, issued March one, said it is company policy not to
comment on rumors or speculation. The earlier announcement also
said American Express and Shearson were studying options
including expansion of capacity to meet international
competition and broadening access to capital.
    The latest rumors originated in Tokyo, traders said.
    If the rumors are true "it gives them a nice infusion of
capital for an attractive price," said Lawrence Eckenfelder,
analyst at Prudential-Bache Securities.
 Reuter
