Welton Becket Associates of Los Angeles and...

Welton Becket Associates of Los Angeles and Ellerbe Associates Inc. of Minneapolis have signed a letter of intent to merge, a move that would create one of the five largest design firms in the United States. The two firms, both closely held, reported 1986 revenues of $24 million and $34 million, respectively. Becket, whose projects include the Capitol Records building in Hollywood and renovation of the State Capitol, specializes in corporate facilities, high-rise offices and hotel designs. Ellerbe is best known for its health-care, corporate, research, and arena and convention center projects. Discussions are expected to take several months. No decision has been made on the name of the merged company, which would have about 750 employees.