FIRST UNION &lt;FUNC> TO BUY FLORIDA BANK

  First Union Corp said it has
  agreed to acquire First State Bancshares Inc of Pensacola,
  Fla.,  and its First State Bank of Pensacola subsidiary for
  about 457,000 common shares.
      First State has assets of about 110 mln dlrs.  The
  acquisition, expected to be treated as a pooling of interests,
  is expected to be completed in the third quarter of 1987
  subject to approval by regulatory agencies and First State
  shareholders.
  

