First Union Cuts Deal To Buy Money Store

First Union Corp. bought The Money Store Inc. for $2.1 billion in stock Wednesday, making the huge banking company the nation’s top home equity lender and a leader in small-business and student loans.

The deal is the latest in a series of purchases by First Union, which recently got shareholder approval for its $16.6 billion takeover of CoreStates Financial Corp. in the biggest bank merger in U.S. history.

The Money Store, based in Union, N.J., but with most of its corporate employees in Sacramento, Calif., will get to keep its 31-year-old name, its 4,800 employees and its catchy commercials with baseball great Jim Palmer under the deal.

Charlotte, N.C.-based First Union will pay $34 per share of First Union common stock for each share of The Money Store common stock. The companies said no office closings are planned.