Shares of Wachovia Corp. and SunTrust Banks soared Friday in heavy volume amid merger rumors.
Some analysts said the two banks may be pursuing a merger of equals; others cited rumors that Wachovia and SunTrust were both exploring deals with other parties.
SunTrust rose $1.625 to $67.50, and Wachovia also rose $1.625, to $44.625.
Analysts said NationsBank Corp.'s agreement to purchase BankSouth Corp. earlier this month heightened the competitive battle in the South and could be behind a pending deal between Wachovia and SunTrust.
Such a deal has been rumored off and on for months, and has even been called the "Coke and Smoke" merger, so dubbed for SunTrust's equity stake in Coca-Cola Co. and Wachovia's Winston-Salem headquarters in the heart of North Carolina tobacco country.