NORSTAR &lt;NOR> SETS ACQUISITION FOR STOCK

  Norstar Bancorp said it has agreed
  in principle to acquire United National Bank of Callicoon,
  N.Y., by exchanging three Norstar common shares for each of the
  201,660 United shares outstanding.
      Based on the recent price of Norstar's stock, it said, the
  proposed tax-free exchange would have a market value of about
  20 mln dlrs.
      Norstar said the acquisition is subject to approval by
  United's holders and state and federal regulators. United has
  assets of 90 mln dlrs.
  

