Morgan Stanley Said to Be in Merger Talks

NEW YORK — Wall Street firm Morgan Stanley Dean Witter & Co. has approached financial services firm American Express Co. about a possible merger, according to people with knowledge of the talks, Barron’s said Sunday.

“On-again, off-again discussions have been held over the past year, and while nothing appears imminent, it is understood that the talks were partly behind the abrupt departure of [Morgan Stanley] President John Mack earlier this year,” the magazine said.

Mack stepped down from his post as Morgan Stanley’s president and chief operating officer in January after reportedly losing a power battle with former Dean Witter head Philip Purcell, the chairman and chief executive of Morgan Stanley.

Takeover speculation brewed around American Express at that time, and the company declined to comment on any rumors.

“We don’t see, at this point in time, any need to do a major merger,” Purcell said when Barron’s asked if a merger with American Express would be part of Morgan Stanley’s expansion.

A spokeswoman for American Express declined to comment for the article and was unavailable for comment Sunday.

In New York Stock Exchange trading Friday, shares of Morgan Stanley lost 91 cents to close at $64.59, and American Express slipped 17 cents to close at $40.99.