	norstar nor fleet flt outline merger fleet financial group said that its board and the board of norstar bancorp have agreed to merge the two bank holding companies in a transaction which would create a billion dlr asset bank holding company under terms of the transaction each norstar shareholder will receive shares of fleet common stock based on the number of fleet shares after giving effect to a previously announced april one fleet stock split the two for one stock split will increase fleet s currently mln outstanding shares to shares there are about mln norstar shares outstanding fleet said the deal is expected to be completed by july one the date on which the nationalization of rhode island s interstate banking law takes effect for the full year ended december fleet a rhode island based bank holding company reported net income of mln dlrs and assets of billion dlrs norstar an albany n y holding company reported net income of mln dlrs and assets of billion dlrs fleet comptroller irv goss said it is estimated that the transaction will result in minimal dilution in fleet norstar earnings per share it is the intention of both companies that cash quarterly dividends following the combination not decline for either company s stock holders the company said for norstar issued dlrs annually in cash dividends on its common stock fleet s current annual distibution on a pre split basis would be equivalent to dlrs a share in addition fleet and norstar have each granted the other an option to purchase such number of authorized buy unissued shares of common stock that will constitute pct of the fully diluted shares outstanding the transaction is subject to both regulatory and shareholder approval the companies said that after the proposed merger the combined banking holding wil be among the largest in the country reuter 
