Boston Five Cents Savings Bank said itand Neworld Bank for Savings have agreed to merge, forming a
new holding company, Boston Five Bancorp.
    Boston Five said the proposal calls for its holders to
receive 1.163 shares of the new company's stock for each share
now held and for Neworld Bank holders to recieve one share for
each share held in a tax free exchange.
    Boston Five said the planned merger with Newworld Bank for
Savings Will create the largest savings bank in Massachusetts
and the third largest in New England with combined assets of
3.1 billion dlrs.
    Boston Five chairman Robert J. Spiller said "There is a
natural fit between both banks. We consider this to be a merger
of equals."
    Spiller will become Chairman of Boston Five Bancorp and
Neworld president James M. Oates will be president and chief
executive officer. 
    Boston Five said its President, Peter J. Blampied, will
become vice chairman and chief operating officer of the holding
company. The board of the holding company will have an equal
number of directors from each institution.
    "Unlike many recent combinations, this merger has no
acquisition premium associated with it," Blampied said.
    Boston Five has assetsof 1.9 billion dlrs and 35 officers.
Neworld has assets of 1.2 billion dlrs and 24 officers in
Massachusetts. It also has a loan center in New Hampshire.
 Reuter
