Edition: U.S. / Global

INTERNATIONAL BRIEFS; Rival Italian Banks Discuss a Merger

Published: February 7, 1998

Istituto Bancario San Paolo di Torino S.p.A. has approved plans to pursue talks to merge with the rival Istituto Mobiliare Italiano S.p.A., creating Italy's largest bank and second-biggest investment bank. The Turin-based San Paolo said its board had decided that a merger with I.M.I. was ''the most favorable option'' for future growth. San Paolo said its board had asked the chief executive, Luigi Maranzana, to draft an ''industrial plan'' for the merger and consider how the transaction would value the two companies.

If the project is approved by I.M.I., whose board meets next week, it would create a bank with 350 trillion lire ($206 billion) in assets, 1,400 branches, 100 trillion lire of funds under management and a strong position in investment banking. (Bloomberg News)

Chart shows I.M.I. stock closes from November 1997 through February 1998 (in Italian Lire).