Salt Lake City's Zions Bancorp ( ZION) claimed victory Wednesday in the bidding war for Amegy ( ABNK), the Houston lender whose Texas branches were also coveted by Compass ( CBSS).

The $1.7 billion deal will pay Amegy holders cash and stock worth about $23.32 a share. The shares closed at $22.98 Tuesday amid rumors of a transaction; they traded below $17 as recently as June 15.

At $6.6 billion, Zions' market capitalization is roughly four times that of Amegy. The bank holding company runs about 400 branches in eight Western states. Amegy, meanwhile, operates about 75 branches around Houston and Dallas.

Zions sees the transaction adding to earnings beginning in 2007.

More from Stocks

PepsiCo Spends $3.2 Billion to Help Save the Planet and Sell More Flavor Pods

PepsiCo Spends $3.2 Billion to Help Save the Planet and Sell More Flavor Pods

Semiconductor Stocks Get Nailed Monday Yet Again

Semiconductor Stocks Get Nailed Monday Yet Again

Dow Holds Gains in Afternoon Trading on Nike Upgrade, Dealmaking

Dow Holds Gains in Afternoon Trading on Nike Upgrade, Dealmaking

Here's Why Sears Is Down 3% and Threatening a New All-Time Low

Here's Why Sears Is Down 3% and Threatening a New All-Time Low

Morgan Stanley's Bears Slightly Bullish on Foot Locker's Earnings Expectations

Morgan Stanley's Bears Slightly Bullish on Foot Locker's Earnings Expectations