NationsBank Corp. shares dropped sharply Tuesday on news of its acquisition of Bank South Corp. at 2.5 times book value, but Wall Street bank analysts said they doubted the lofty price would establish a new threshold for merger prices.

"I don't think we'll be seeing many deals with prices as high as this one. The standard will probably still be around twice book value," said Frank W. Anderson of Stephens Inc., Little Rock.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.