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.         
 Reuter