Officials at all three banks declined to discuss with GlobeSt.com the commercial real estate aspect of the pending merger. But real estate sources intimate with the transaction tell GlobeSt.com Downtown will be hit with substantial subleased space if the merger goes through.

Shareholders and the courts are now deciding the outcome of SunTrust' unsolicited bid to buy Wachovia in lieu of First Union's prior offer.

The success of SunTrust's bid could have a stronger impact on the Atlanta market because Sun executives have said the proposed new bank would have headquarters here.

Wachovia now leases 380,000 sf at 191 Peachtree Street. A merger has the potential of losing some of that space. Wachovia's board voted 14-1 to reject the SunTrust offer of $13.9 billion.

Following that vote, L. Philip Humann, chairman and CEO of SunTrust, says the company is taking its proposal directly to Wachovia investors.

The date for a special hearing of shareholders will not be set until after a review by the Securities and Exchange Commission of merger plans. The review is expected to be completed in about a month.

Meanwhile, SunTrust is also suing Wachovia Corp. and First Union Corp. in Georgia state and federal courts.

One suit challenges stock options that let First Union and Wachovia acquire 19% of each other's stock using any assets, including foreclosed properties. A second suit filed in federal court in Georgia claims the two companies public disclosures have been misleading.

Wachovia CEO L.M. Baker cited SunTrust's "lackluster growth," declining hearings and weakness in business areas such as asset management as reasons for the board's rejection.

In a letter to shareholders, Baker says Wachovia had "looked long and hard" on several occasions at a combination with SunTrust. Discussions ended last December.

SunTrust's Humann has repeatedly expressed frustration and disappointment about Wachovia's breaking off the planned merger without giving reasons.

First Union's offer of two shares for every Wachovia share was valued at $13.3 billion. First union raised its offer by decreasing executives retirement benefits and guaranteeing dividend payments will remain at the Wachovia level of $2.40 a year. Humann has maintained repeatedly that SunTrust's offer is far superior to First Union's.

"The SunTrust proposal offers a higher current value, a simpler and better dividend, a stronger currency, and lower execution risk," says in a prepared statement. "Our proposal is also more favorable for Wachovia's employees and communities."

SunTrust's offer on May 14 was to give Wachovia shareholders 1.081 shares of SunTrust common stock for each Wachovia share. In addition, SunTrust offered to increase its per share dividend to $2.22 so that Wachovia stockholders would receive on a pro forma equivalent basis the same $2.40 annual per share dividend they currently have.