AMERICAN EXPRESS &lt;AXP> VIEWING SHEARSON OPTIONS

  American Express Co, rumored to be
  considering a spinoff of part of Shearson Lehman Brothers Inc,
  said it is studying a range of options for its brokerage unit
  that could improve Shearon's access to capital and help it meet
  broadening international competition.
      In a joint statement, American Express and Shearson said
  the actions under consideration are an integral part of
  American Express' worldwide financial services strategy and
  that the two companies have been having both internal and
  external discussions on the matters.
      American Express said no decision has been reached on the
  strategic options and that it and Shearson could ultimately
  decide to follow growth plans already in place.
      Last week, rumors circulated on Wall Street that the
  financial services giant was considering a spinoff of part of
  Shearson and there was speculation it may be considering
  selling a stake to a Japanese firm. Analysts said the
  speculation also focused on American Express selling 20 pct of
  the profitable brokerage firm to the public.
      There was some speculation that American Express had also
  considered a total spinoff of Shearson, but the plan was
  considered highly unlikely, analysts said.
       American Express said in the statement on Sunday that it
  will not comment on rumors and speculation and a spokesman
  would not go beyond the statement. The company also remained
  silent last Thursday and Friday, as rumors drove American
  Express stock up a total of 5-1/2 dlrs in two days to bring it
  to a Friday close at 74.
       It said it issued the statement on Sunday because a
  similar statement was being circulated to employees.
      Analysts have been divided on whether it makes sense for
  American Express to give up a stake in the wholly-owned
  brokerage, which improved its after-tax earnings by about 50
  pct in the last year.
      Some analysts said American Express may consider spinning
  off part of Shearson because it is concerned that its stock
  price does not fully reflect the value of the brokerage firm.
       Shearson contributed 316 mln dlrs of American Express'
  1.25 billion dlr net in 1986.
      American Express' ambitious plans for international growth
  may be also enhanced by the added cash that spinning out part
  of Shearson would bring. Analysts speculated that all of
  Shearson would have a market value of about 3.5 billion dlrs.
      To some however, the need for added capital is puzzling.
  "(American) Express is in a position where they can raise
  capital if they need to," said Larry Eckenfelder of
  Prudential-Bache Securities.
      Analysts said rumors were fed by the reorganization of
  Shearson management Wednesday. Chief operating officer Jeffrey
  Lane got the added, previously vacant, post of president.
       The reorganization also created four new positions for
  chairmen of Shearson's operating divisions, a move analysts
  speculated would allow Shearson to be a stand alone company.
       Analysts, contacted on Sunday said the statement does
  little to clarify last week's market speculation. It does
  confirm, however, that the financial services firm, which
  unsuccessfully attempted to expand Shearson with a major
  acquisition last year, is looking beyond its own walls for
  growth and positioning in the global market competition.
      Late last year, Shearson's takeover offer to the E.F.
  Hutton Group Inc was rejected by Hutton, and analysts said
  there had been speculation that Shearson also was rebuffed when
  it approached another major Wall Street brokerage.        
  

