Washington Mutual to Buy Bank United

Washington Mutual Inc., which built itself into the largest U.S. savings bank by snapping up West Coast rivals, said it will acquire Bank United Corp. for $1.49 billion, giving it top-tier market share in three of the four largest Texas metropolitan markets. Seattle-based Washington Mutual said it will exchange 1.3 of its shares for each share of Houston-based Bank United, which was formed more than 10 years ago by former Salomon Bros. bond trader Lewis S. Ranieri. With the acquisition, Washington Mutual would have $10.7 billion in deposits in Texas, up from $1.9 billion now. Seattle-based Washington Mutual has total assets of about $186 billion. Washington Mutual said it expects the deal to save $87 million by 2002, in part through the elimination of 600 to 650 jobs. Bank United stock fell $1.50 to close at $40.88 on Nasdaq. Washington Mutual shares closed off 75 cents at $32.06 on the NYSE.