April 3, 2000

It appears there will be no new deal to salvage the merger of First Security and Zion's banks. And both companies are quiet about their futures, leaving customers and investors, with many questions. News Specialist Sam Penrod has the latest.

It was to be a stunning spring wedding, but at the last minute, Zion's backed out before saying, "I do," and First Security was left standing at the altar. Analysts now say life for either bank won't ever be the same.

Eric Reim/Market Analyst/U.S. Bancorp Piper Jaffray/Minneapolis: OUR FEELING IS ZION'S WILL SURVIVE OUT OF THIS. WE THINK THERE'S DEFINITELY A CHANCE FIRST SECURITY WOULD ENTER INTO ANOTHER MERGER AGREEMENT SOMETIME THIS SUMMER.

Two giant financial institutions -- Wells Fargo and Bank of the West -- are said to be on the short list of those who may be interested in First Security.

Gary Gygi/Morgan Stanley Dean Witter: EVERYONE TALKS ABOUT MERGERS AND ACQUISITIONS, BUT AT THIS POINT IT'S ALL SPECULATION.

But with poor earnings recently-- that soured the Zion's deal-- First Security is vulnerable. And it appears First Security has some insecurity about it's position, which it may be trying to shore up.

Gary Gygi/Morgan Stanley Dean Witter: FIRST SECURITY ANNOUNCED ITS GOING TO BUY BACK 15-MILLION SHARES OF ITS OWN STOCK ON THE OPEN MARKET AT VARIOUS TIMES, GENERALLY THAT MEANS THEY FEEL THEIR STOCK IS A GOOD VALUE AT THIS POINT."

) But it could also mean the company wants to protect itself from an institution who may snap up its stock with a takeover in mind.

Sam Penrod/Eyewitness News: ANALYSTS SAY THE FUTURE OF BOTH BANKS MAY WELL DEPEND ON HOW EACH CAN DEAL WITH THE RECENT PAST. THE FAILED MARRIAGE HAS ALREADY COST BOTH BANKS TENS OF MILLIONS OF DOLLARS. AND THE SKIES OVER BOTH BANKS ARE DARK WITH THE THREAT OF LAWSUITS...ALL INDICATIONS THAT IT WILL TAKE BOTH PARTNERS TIME TO GET USED TO BEING SINGLE AGAIN."

Zion's stock dropped a point and 5/8ths today, closing at 40. First Security closed unchanged from Friday, at 12 and a 16th.