The BankAmerica Corp-NationsBank Corp merger pact followed hours after another announcement involving Banc One Corp's $29 billion merger with First Chicago NBD Corp. These two latest merger pacts follow a historic $70 billion merger deal between Citicorp and Travelers Group Inc last week.

Under the merger pact approved by the boards of directors of BankAmerica and NationsBank, a new holding company called BankAmerica Corp will be created. Shareholders of the old BankAmerica will exchange each of their shares for 1.1316 shares of the new BankAmerica. NationsBank shares will be converted into shares of the new company on a one-for-one basis.

Hugh McCollof NationsBank, who will become chairman and chief executive officer of the new company, said: "We view this merger as a watershed event in the banking industry, creating a profitable and aggressively managed national banking franchise." David Coulter of BankAmerica will be president of the new company.

Charlotte-based NationsBank and San Francisco-based BankAmerica said the merger would not result in any earnings dilution and would establish a company with $45 billion in shareholder equity and market capitalisation of $133 billion.

Following the merger, which is expected to close in the fourth quarter, the new BankAmerica will have 180,000 employees, relationships with 29 million households in 22 states across the US and will serve two million businesses in 39 countries.

In the case of Banc One's merger with First Chicago, both the entities said that they had agreed to merge in a stock swap valued at about $29 billion.

First Chicago shareholders will trade each share for 1.62 shares of Banc Onestock. The transaction values First Chicago at about $100 per share, based on Banc One's Thursday closing price of $61.75. Banc One chairman and chief executive, John McCoy, will become president and chief executive of the combined company, while First Chicago chairman, president and chief executive, Verne Istock, will become chairman.

Banc One shareholders will own 60 per cent of the combined company, which will be called Banc One, while First Chicago holders will own 40 per cent.

The transaction, expected to close in the fourth quarter, will create the largest retail and commercial banking franchise in the US Midwest, headquartered in Chicago. The company will be the nation's second largest credit card issuer, with $60 billion in receivables, and the top small business lender.

Banc One will have a market capitalisation of $72 billion, total managed assets of $279 billion, and more than 2,000 offices across the country. The deal is expected to be accretive to 1999 earnings, but first the companiesexpect to take transaction-related charges totalling $1.25 billion.