First Chicago will acquire FUFS for $175.6 million.

The acquisition of First United Financial Services Inc., a Chicago-area bank holding company with $1.1 billion in assets, expands First Chicago Corp.’s suburban Chicago banking business. Stockholders of First United will have the option of receiving either a new issue of First Chicago convertible preferred stock or cash. The deal is subject to approval by stockholders and government regulators, and the companies expected to complete it in the second half of 1987.