Comparing lists

How do I compare the contents of one list to a second list and make a third list with only the items that appear in both lists?

set list1 to {"a", "b", "c", "d"}
set list2 to {"a", "B", "C", "d", "E"}
set list3 to {} -- should contain {"a","d"}

considering case
	repeat with anItem in list1
		if list2 contains anItem then set end of list3 to anItem as string
	end repeat
end considering

Thanks a lot. It worked.