ST. LOUIS -- First Banks Inc. said it had entered into a letter of intent to acquire all of the outstanding stock of American Home Savings and Loan Association of St. Louis.

In a news release, the companies said the shares would be acquired by First Banks for $1.50 each in cash.

The companies said a previous letter of intent under which American Home was to be acquired by First Capital Corp. for $2 a share had been withdrawn.

The companies said that under the current agreement, American Home Savings and Loan would merge with First Bank -- A Savings Bank, a unit of First Banks Inc.

The transaction is subject to a definitive agreement and various approvals and conditions.

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