Oct. 10--National City Corp.'s decade-long run of heavy mortgage lending that included risky subprime loans has placed the bank in the takeover sights of larger and stronger rivals.

Pittsburgh's second-largest bank is believed to be discussing a merger with several banks, including PNC Financial Services Group, the area's biggest, although spokespeople for the institutions refused to comment.

National City spokeswoman Kristen Baird Adams said the bank is "strong, stable and well-capitalized."

Analysts said regulators, concerned about weakened banks, likely would allow a PNC tie-up, despite the dominant Pittsburgh-market concentration it would produce.

A sale of Cleveland-based National City, the nation's 10th-largest bank, would continue a string of departures of giant U.S. banks.

JPMorgan Chase recently bought Washington Mutual, the nation's biggest savings institution. And it appears Wachovia Bank will be acquired by Wells Fargo after Citicorp said Thursday it would not pursue a competing bid.

Also talking merger with National City is Toronto-based Bank of Nova Scotia, the Wall Street Journal reported yesterday. Other reports included Banco Santander, Spain's biggest bank, as a possible suitor.

"At this point, a sale has to be considered a pretty realistic possibility. The decline of the stock price itself puts pressure on management to sell," said Sean Ryan, an industry analyst for Sterne Agee, New York.

Stock in the struggling bank dropped about 85 percent this year. National City slashed its dividend to one penny a share in April, when it raised $7 billion in capital to shore up its balance sheet. Shares of the bank closed at $2.15 yesterday, down 8 cents.

National City, which employs about 2,000 people in this region, posted a $1.76 billion loss for the spring quarter. Analysts expect more losses when the bank posts summer-quarter results in two weeks and another loss after the fall quarter.

"Do they need to be acquired? No," said Frank Barkocy, research director of Mendon Capital Advisors, New York. "They could survive on their own, unless we had a severe economic recession. But obviously, they probably could be better with a strong partner."

At yesterday's closing price, National City's total stock is worth about $4.8 billion. PNC spent more, $6 billion, to buy Mercantile Bancshares, Baltimore, in March 2007.

PNC spokesman Fred Solomon said PNC doesn't comment on rumors or speculation. Bank of Nova Scotia spokespeople did not return phone calls.