ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Thursday, January 2, 1997 TAG: 9701020083
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
DATELINE: CHARLOTTE, N.C.
NationsBank Corp., under pressure to justify its $9.86 billion acquisition of Boatsmen's Bancshares Inc., will report higher-than-expected cost savings and stronger revenues, analysts said.
NationsBank is expected to report as much as $500 million in savings from the merger, up from the $335 million in a forecast, said George Salem, a banking analyst at Gerard Klauer Mattison & Co. Inc. The company is scheduled to meet with analysts Jan. 13.
NationsBank, which plans to complete the purchase of the Saint Louis-based bank Tuesday, also will generate $225 million in revenues from the merger, up from its initial estimate of $180 million, he said.
Salem recommended that NationsBank's shares be purchased now, ``because good news is coming, but it's not yet reflected in the price.''
Salem published a report on NationsBank on Monday and forecast that the bank in the first quarter will announce a ``mammoth'' stock buyback program of about 67 million shares over three years, including 39 million, or 10 percent, in 1997.
- Associated Press
LENGTH: Short : 31 linesby CNB