LONDON (ShareCast) - (Sharecast News) - Shares in American financial services group Northern Trust were rising strongly in pre-market trade on Monday on the back of speculation of a potential merger with Bank of New York Mellon Corp.
According to the Wall Street Journal, BNY had approved Northern Trust last week to start talks about a possible combination of the two firms, which could create one of the largest firms in the asset servicing and wealth management industry.

While no formal offer has been discussed, insiders told the Journal that the bosses of each company had at least one conversation.

While BNY is said to be considering next steps, the report also cited a personal close to the matter who said that Northern Trust has no interest in pursuing a merger.

While any potential industry merger would have to pass antitrust and other regulatory approvals, the Trump administration has been open about its willingness to clear the way for more M&A in the banking sector.

NTRS shares were up 4.8% at $117.25, their highest in over three years, giving the bank a market cap of $22.8bn, while BNY is valued at around $65.6bn.

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