Shares in three regional banks fell Tuesday after analysts said takeover speculation had boosted their prices too high.
Midlantic Corp. was down-rated, to "sell" from "hold," by Jerome I. Baron, banking analysts at Josephthal, Lyon & Ross.
PanieWebber Securities analysts Thomas McCandless downgraded First Bank System Inc., to "neutral" from "attractive," and BayBanks Inc., to "attractive" from "buy."
Midlantic's price dropped $1.50 a share, to $30.375; First Bank's, 37.5 cents, to $38.625, and BayBanks', $1.50, to $62.50.
With the Dow Jones industrial average off 12.61 points, to 3,755.91, most bank stocks fell.