Wells Fargo & Co. is talking to First Union Corp. about a possible acquisition. Wells' mortgage banking unit recently purchased $35 billion in residential servicing rights from First Union's mortgage affiliate, but the current talks revolve around the purchase of First Union, the bank, by Wells, the bank.

One investment banker said recently that FleetBoston Financial has been talking to First Union about a possible merger. If Wells buys First Union, Wells presumably would take control of First Union Mortgage's remaining $25 billion in mortgage servicing rights, and its residential production operation.

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