Washington Mutual to Buy Bank United

Updated from 9:39 a.m. EDT

In a deal that will significantly expand its presence in Texas, Washington Mutual (WM Quote), the nation's largest savings and loan firm, agreed to buy Bank United (BNKU Quote) in a stock deal valued at $1.5 billion, the companies said Monday.

Under the terms of the deal, each share of Bank United common stock will be converted to 1.3 shares of Washington Mutual common stock. Based on Friday's closing prices, the deal values Bank United at $42.66 per share, or almost no premium to its Friday close of 42 3/8. Shares of Washington Mutual closed Friday at 32 13/16.

Bank United finished Monday regular trading down 1 1/2, or 4%, at 40 7/8, while Washington Mutual ended down 3/4, or 2%, at 32 1/16. ...