Milwaukee-based Firstar Corp. on Monday agreed to buy Investors Bank Corp., a $1 billion-asset Minnesota thrift, in a stock-swap deal valued at $106 million.

The deal, expected to close in the first quarter of 1995, will double Firstar's presence in the Minneapolis-St. Paul market and expand its mortgage banking business. Firstar will exchange 0.8676 a share for each Investors share. Based on current trading values, the purchase price equals 2.16 times Investors' book value, or 10.6 times analysts' consensus 1994 earnings forecast, as published by First Call Corp.

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