Morgan, have paid a total of $46.7 million for 2.3 million ordinary shares each in insurance firm EXEL. The shares were transacted under a stock option arrangement which was due to expire on June 30, 1996. The options were exercisable at $10 per share. The transaction leaves M&M and Morgan each holding stakes of approximately four percent in EXEL.

Following the exercise of the options, there currently remain outstanding options, excluding those held by employees, for 3.575 million shares, held by 16 holders. A statement by EXEL yesterday stated: "The company intends to make available to such option holders an opportunity to sell such options to the company at a price approximately equal to the difference between the market price of the stock and the $10 per share exercise price of the options.