FIRST GRANITE <FGBI> AGREES TO BE ACQUIRED
First Granite Bancorp Inc
said it agreed in principle to become a wholly owned subsidiary
of Magna Group Inc <MAGI>.
    Under terms of the agreement, First Granite shareholders
will receive 2.175 shares of Magna for each First Granite share
held. First Granite shareholders will be asked to approve the
tranaction in late summer.
    First Granite, which has 675,000 shares outstanding, as of
Dec 31, 1986 had assets of 186.5 mln dlrs. It owns First
Granite City National Bank and Colonial Bank of Granite City,
Ill.
    Magna Groups as of Dec 31, 1986 had assets of 1.47 billion
dlrs. It owns 13 banks, a data services company, a mortgage
company and a trust company, serving St. Louis as well as
Springfield, Centralia and Decatur, Ill.
 Reuter
