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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: March 17, 1998 Commission file number 1-5805
THE CHASE MANHATTAN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 13-2624428
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(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
270 Park Avenue, New York, NY 10017
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(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (212) 270-6000
Item 5. Other Events
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On March 17, 1998, The Chase Manhattan Corporation ("Chase") issued a
press release announcing actions to streamline support functions and realign
certain business functions and, that, in connection with these initiatives, it
will take a one-time charge in the first quarter of 1998 of $510 million ($320
million after-tax). Annual savings from the actions are anticipated to amount to
approximately $460 million, which will be reinvested in Chase's high-growth
businesses.
Chase also announced that its Board of Directors approved a 16% increase
in the quarterly common stock dividend to $.72, or $2.88 on an annual basis. The
increase will be effective for the dividend payable on April 30th to
stockholders of record at the close of business April 6th.
The Board also approved a two-for-one stock split, subject to stockholder
approval at Chase's annual meeting on May 19th. If approved by the stockholders,
the stock split is intended to be effective at the close of business on May 20,
1998, and stock certificates representing the shares issued as a result of the
split will be mailed to stockholders on or about June 12, 1998.
A copy of Chase's press release is attached as an exhibit hereto. That
press release contains statements that are forward looking within the meaning of
the Private Securities Litigation Act of 1995. Such statements are subject to
risks and uncertainties and Chase's actual results may differ materially from
those set forth in such forward-looking statements. Reference is made to Chase's
reports filed with Securities and Exchange Commission, in particular Chase's
Annual Report on Form 10-K for the year ended December 31, 1996, for a
discussion of factors that may cause such differences to occur.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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The following exhibits are filed with this report:
Exhibit Number Description
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99.1 Press Release
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE CHASE MANHATTAN CORPORATION
(Registrant)
By: /s/Dina Dublon
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Dina Dublon
Executive Vice President and
Treasurer
Dated: March 17, 1998
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Chase Takes Actions to Support Growth Plans,
Raises Divident 16% and
Announces Two-for-One Stock Split
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New York, March 17, 1998 - The Chase Manhattan Corporation (NYSE:CMB)
today announced actions to streamline support functions and realign certain
business activities. Annual savings from the actions will amount to
approximately $460 million, which will be reinvested in Chase's high-growth
businesses.
Chase will take a special one-time charge in the first quarter of $510
million ($320 million after tax) in connection with the initiatives, which will
result in the reduction of approximately 4,500 existing positions, to be
accomplished in part through normal attrition and a hiring freeze on unfilled
positions. It is expected that a substantial number of new positions will be
created in connection with the reinvestment of savings in Chase's growth
businesses.
"Chase has emerged over the past two years as an entirely new company with
unusual opportunities for growth," said Walter V. Shipley, chairman and chief
executive officer. "To take advantage of these opportunities, we are moving
decisively to increase our effectiveness and maximize resources available for
investment in our high-potential businesses."
Chase also announced that its Board of Directors today approved a 16%
increase in the quarterly common stock dividend to $.72, or $2.88 on an annual
basis. The increase will be effective for the dividend payable on April 30th to
stockholders of record at the close of business April 6th.
The Board of Directors also approved a two-for-one stock split, subject to
shareholder approval at the corporation's annual meeting on May 19th. The
actions reflect the Board's confidence in Chase's ability to accelerate its
revenue growth rate over the next several years.
Implementation of a new structure includes the creation of Chase Business
Services, a unit which will perform functions common to all businesses, thereby
benefiting from scale efficiencies. Business realignments include the creation,
as previously announced, of a single, integrated national consumer services
franchise, the combining of technology-intensive businesses and functions into a
single strategic platform, called Chase Technology Solutions, and the
reorganization of certain global banking units.
"We have a solid plan to collapse reporting layers and speed-up decision
making," said Thomas G. Labrecque, president and chief operating officer. "The
result will be a stronger and more effective organization, ensuring a
continuation of our strong operating performance."
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Investor Contact: John Borden Press Contacts: John Stefans 212-270-7438
212-270-7318 Kathleen Baum 212-270-5089