Updated from 7:23 a.m. EDT
agreed to buy specialist firm
M.J. Meehan & Co.
in a deal that will significantly boost the Boston-based bank's floor-trading operation on the
New York Stock Exchange
Specialist firms trade on the floor of the stock exchange in specific stocks, and use their own capital if needed. Meehan is a specialist for 119 stocks, including
, and would combine with FleetBoston's 314 stocks, which include
, to create the largest NYSE floor-trading firm in terms of number of stocks. The combined company would rank second in trading volume with 18%, behind
LaBranche & Co.
The new firm, to be called
Fleet Meehan Specialists
, will make a market in 433 common stocks listed on the NYSE, including 59 of the 250 most active stocks, eight of the 30
Dow Jones Industrial Average
companies, and 86 of the
Terms of the deal were not disclosed although
The Wall Street Journal
, which originally reported the deal Tuesday, estimated it at $200 million.
The deal, subject to regulatory approval from the
and the NYSE, is expected to close in the fourth quarter.
FleetBoston closed trading Monday up 15/16 at 38 3/8.