No merger ever mooted. What actually happened was the Polytechnic, where I just started work as a very junior lecturer, was to become 'City University, Newcastle upon Tyne'. Announced to widespread derision in our staff newsletter, only for the staff newsletter to announce a few weeks later we were not, after all, going to be City University, "because of objections by another City University". Slightly unfortunate, as a number of my colleagues had already devised some imaginative marketing slogans that repeated here would get me moderated out of existence. Instead, we became University of Northumbria at Newcastle, with the safer acronym of UNN. There followed a few weeks of letters in the staff newsletter discussing, in a most cultured and literary manner, derivations of the word onanism before the editor cottoned on and closed the subject. (We are now Northumbria University, suffice to say are now quite grown up and have a marketing department who stop us making silly mistakes.)
Sadly, my copies of the newsletter were thrown before I woke up to how this would become an urban myth and doubtless all remaining copies were discretely pulped, so you just have to take my word on all this.
Or maybe I am telling a good yarn ...