First Union Corp. said Thursday that it amended its merger agreement with Everen Capital Corp. to reflect recent volatility in its stock price.

Instead of the initial agreement to issue a fixed number of shares, First Union would now have room to issue more shares at the deal's closing depending on the stock's performance, a bank spokeswoman said. The stock swap deal was announced in April and is expected to close in the third quarter. The transaction would still be valued at the original price of $1.1 billion, the spokeswoman said.

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