Article: Hongkong Bank and Midland return to bargaining table. (HSBC Holdings PLC)

LONDON - Midland Bank PLC and HSBC Holdings PLC disclosed Tuesday that they have resumed negotiating a merger that would create an international banking colossus with $254 billion of assets.

HSBC, the British holding company for the Hongkong and Shanghai Banking Corp., said talks were proceeding on a recommended bid "at a significant premium" over Midland's Tuesday opening stock price of $4.42 a share.

The companies had broken off merger talks in 1990. But a possible combination - which would have global consequences extending to both companies' U.S. subsidiaries - remained the subject of persistent rumors.

Midland's price soared on the news ...

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