SAN FRANCISCO - The merger agreement between Zions Bancorp. and First Security Corp. took another step toward dissolution on Monday when the investment bank advising Zions said it no longer considered the deal's exchange ratio to be fair.

Zions finds itself the likely target of lawsuits no matter what it does next - First Security hinted Monday that it might launch a legal battle if Zions wavers in its commitment to the deal. Zions was noticeably guarded in its response, opting to delay its shareholder vote and give investors a chance to change their minds on their proxy vote.

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