ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Saturday, September 7, 1996            TAG: 9609090030
SECTION: BUSINESS                 PAGE: A-4  EDITION: METRO 
SOURCE: MAG POFF 

FIRST UNION TO BUY MUTUAL-FUND FIRM

First Union Corp. said Friday it has agreed to acquire Keystone Investments Inc., a Boston-based investment management and mutual fund company with $11.6 billion in assets under management.

The acquisition, combined with the Evergreen family of mutual funds already managed by First Union, will create a mutual fund portfolio of 69 individual mutual funds and nearly $27 billion in assets under management. Together they will have a network of 4,200 dealers, 30,000 brokers, 32 external wholesalers and 46 internal salespeople, with distribution in five countries.

First Union will issue 2.9 million shares of common stock with a value of $183 million for the acquisition and will assume about $106 million of net debt from Keystone.

The deal is scheduled to close in late 1996 or early 1997, subject to approval by regulators and Keystone shareholders.

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