SunTrust hasn't disclosed the price but financial sources familiar with the transaction tell GlobeSt.com on condition of anonymity that it is estimated at $15 million.

SunTrust's investment banking subsidiary will be renamed, but primary offices will remain in Atlanta, say banking officials. Atlanta-based SunTrust signed an agreement to buy the institutional business division of Robinson-Humphrey Co. from Citigroup's Salomon Smith Barney unit.

Upon closing of the transaction this summer, SunTrust's investment banking subsidiary, SunTrust Equitable Securities, will be renamed SunTrust R-H Securities Inc.

The newly acquired businesses will be combined with SunTrust's existing equity capital markets and merger and acquistions divisions to become the Robinson-Humphrey Equity Capital Markets division of SunTrust R-H Securities Inc.

SunTrust R-H Securities will also include the firm's Debt Capital Markets division. Both divisions will remain in Atlanta, but will have offices in several other US locations.

R-H's investment banking division provides advisory services relating to mergers, acquisitions, business divestitures, public offerings and private placements of debt and equity. The division also includes capital markets and research.

SunTrust's offer the day before to acquire the Wachovia Corp. was an obvious attempt to break a previous deal where Wachovia agreed a month ago to be acquired by First Union for $12.7 billion.

A First Union-Wachovia combination would be based in Charlotte, a long-time banking capital and already home to Bank of America, leaving that city the unchallenged banking center of the Southeast.

But SunTrust's proposal would bring the new financial center to Atlanta, and create a climate that could improve this area's standing as a financial center, a positive boost for future commercial development. Wachovia's board of directors say they will review the SunTrust offer in the "near future."

Officials of SunTrust who were apparently upset at Wachovia's rejection of their offer last December deny their bid represents anything like a "hostile" takeover, which is rare in the banking business. Banking officials have long been saying that Wachovia with a similar corporate culture is a perfect fit for SunTrust.

L. Phillip Humann, SunTrust's chief executive, during a conference call expressed disappointment that Wachovia did not cite any clear reasons for their calling off merger talks last year. He also says Wachovia management downplayed merger rumors last April as well.

Commercial real estate observers in Atlanta say it should not make much difference whatever financial institution emerges, an event that could still be several months away.

Glenn Kolker, a partner with Childress Klein Properties in Atlanta, has a unique perspective because his company has banking clients both here and in Charlotte. He is careful to recognize Charlotte's continuance as the dominant banking center of the Southeast, but thinks SunTrust's success could give Atlanta a real boost.

"If SunTrust acquires Wachovia, my guess is that, yes, Atlanta would certainly benefit from that, and there may be a buildup in terms of the banking industry," Kolker tells GlobeSt.com. "Whether that means more banks would be headquartered there, we don't know."

SunTrust's success could have the most impact on the Downtown office market, he says. Ronald Curry agrees. He is a 40-year veteran real estate observer who founded the real estate appraisal firm of Curry Carter & Associates in Atlanta. "There's always a lot of political pressure for banks to retain a headquarters Downtown," he says.