Dime Bancorp in Merger Talks With Larger Thrift

Dime Bancorp Inc. said Friday that it was in talks for a possible merger “with a larger financial institution,” but said it was still too early to say whether the deal would go through.

The announcement did not name the suitor, but a source close to the deal said Washington Mutual Inc., the nation’s largest thrift, was in talks to acquire Dime.

Washington Mutual officials declined to comment on any possible acquisitions.

Shares of Dime fell $1.20 to $36.88, while Washington Mutual fell 49 cents to $38.90, both on the New York Stock Exchange.