THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, September 28, 1996          TAG: 9609280220
SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 
SOURCE: BY TOM SHEAN, STAFF WRITER 
                                            LENGTH:   42 lines

AGAINST SPECULATION, SIGNET BANKING CORP. SAYS IT'S NOT FOR SALE REPORTS SAID RICHMOND-BASED COMPANY WAS SOLICITING OFFERS.

Hoping to counter speculation that it's in the midst of merger discussions, Richmond-based Signet Banking Corp. said Friday that it wasn't for sale and wasn't engaged in any talks with possible suitors.

Signet's statement came on the heels of a Business Week article that said Charlotte-based First Union Corp. was interested in acquiring Signet.

Quoting an unidentified money manager, Business Week said Signet had rejected a takeover offer of $35 a share, or $2.1 billion, and was holding out for $37 to $40 a share, Bloomberg News Service reported Friday.

Earlier this week, the price of Signet's shares shot up on speculation that the company would likely be acquired, possibly by the Winston-Salem-based banking company Wachovia Corp.

With assets of $11.5 billion, Signet is the second-largest banking company based in Virginia.

Like most companies with publicly traded stock, Signet normally refrains from addressing any questions about merger discussions. However, Friday's situation was different, said Teri Schrettenbrunner, a Signet spokeswoman.

``We felt the level of speculation had reached the point where we needed to comment,'' she said.

The price of Signet's shares jumped $1.62, or 6 percent, in heavy trading Friday to end the day at $28.75. For the week, the price was up $4, or 16 percent.

In addition to dismissing reports of a possible merger, Signet said Friday that it expects to undertake a major study of its operating costs later this year.

``We've been soliciting bids and ideas from consultants,'' Schrettenbrunner said.

Signet, like many banks, has been reducing its reliance on branches for delivering service and devoting greater attention to less costly alternatives, including use of telephones, mail and computers.

It's too early to say whether Signet's heightened attention to costs will lead to layoffs, Schrettenbrunner said. Signet has 250 branches in Virginia, Maryland and Washington and 5,000 employees. by CNB