BUSINESS MEMO: UNION PLANTERS TO EXPAND

Union Planters Corp., a $15 billion Memphis-based bank holding company, has announced an agreement to buy Magna Bancorp Inc., a $1.3 billion asset parent company of Magnolia Federal Bank For Savings.

The agreement calls for Union Planters to exchange .5165 shares of common stock for each common share of Magna. The transaction would be valued at about $323 million, or $23.50 per share based on Union Planters' closing stock price of $45.50 when the pact was announced.

Magna is the largest mutual thrift in Mississippi and the sixth largest financial institution in Mississippi. Magna was also the largest thrift in Alabama.

Magnolia Federal operates 62 banking facilities and 63 ATMs in Mississippi and South Alabama. Union Planters has 112 offices and 120 ATMs in Mississippi.

Union Planters, founded in 1869, has more than 430 banking facilities and 560 ATMs in six states, including six banking sites in Cape Girardeau County, three each at Cape Girardeau and Jackson.