Zions Bancorp. Inc. announced Monday that it plans to swap about $140 million of preferred shares for up to 7 million common shares to boost its common-equity levels.

The Salt Lake City company also said in a filing with the Securities and Exchange Commission that it would hedge some of its securities portfolio to make its balance sheet more "asset sensitive." Raymond James analyst Dennis Klaeser said that would provide Zions with a significant tax benefit, reduce the size of its deferred tax assets and allow Zions to recoup taxes paid in 2007.

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