Firstar

said Thomas H. Jacobsen will step down as chairman Dec. 30 to make room for John F. Grundhofer, but will remain a member of the board.

Grundhofer is the current chairman, president and chief executive of

U.S. Bancorp

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, which Firstar is

acquiring. Grundhofer will become chairman of the combined company when the transaction is completed. Jacobsen will serve as chairman emeritus.

The companies expect to close the transaction in the first quarter of 2001. Jerry A. Grundhofer, John's brother, is the president and CEO of Firstar, a bank and financial services concern based in Milwaukee. He will continue in those positions with the combined company.