	s atlantic soaf o independence inho o merge south atlantic financial corp said it has agreed in principle to merge with independence holding co into a new company to be called safco international ltd it said each south atlantic share would be exchanged for one safco share and each independence share for safco shares independence now owns about pct of south atlantic s mln primary common shares south atlantic said said its chairman and chief executive officer sheldon s gordon would have the same posts with safco and independence president ronald g strackbein would be president of safco the company said the transaction is subject to execution of definitive agreements the receipt of fairness opinions from investment banks and approval by boards and shareholders of both companies it said proxy materials are expected to be maioled this quarter both south atlantic and independence are insurance companies reuter 
