Wells Fargo Announces Exchange Offer for First Interstate Bancorp Shares

Strategic Insights -

Wells Fargo & Co., a major banking firm, has filed its Exchange Offer with the Securities and Exchange Commission (SEC) for the acquisition of all outstanding shares of First Interstate Bancorp. This move is in response to a competing offer from First Bank System, and Wells Fargo aims to assure First Interstate shareholders that they will have the option to exchange their shares for Wells Fargo stock if they reject the First Bank System merger proposal. Wells Fargo plans to file proxy solicitation materials to solicit proxies against the First Bank System merger within the next week.

Key Takeaways:

  • Wells Fargo has filed its Exchange Offer with the SEC to acquire all outstanding shares of First Interstate Bancorp.
  • The move is in response to a competing offer from First Bank System and aims to assure First Interstate shareholders of their options.
  • Wells Fargo plans to file proxy solicitation materials to solicit proxies against the First Bank System merger within the next week.
  • If First Interstate shareholders reject the First Bank System merger, they will be able to exchange their shares for Wells Fargo stock within the same time frame as the First Bank System proposal.
  • Wells Fargo has appointed multiple executive officers and employees to assist in the solicitation process, including Vice Chairman Michael J. Gillfillan, Executive Vice President Leslie L. Altick, and Chief Financial Officer Rodney L. Jacobs.
  • As of November 20, 1995, Wells Fargo owned 100 shares of First Interstate Common Stock beneficially.
  • Wells Fargo held 1,961,095 shares of First Interstate Common Stock in a fiduciary capacity, representing approximately 2.6% of the outstanding shares.
  • There are business relationships between the Regents of the University of California, of which Chang-Lin Tien is an officer, and First Interstate Bank of California.

Statistics:

  • 100 shares of First Interstate Common Stock owned beneficially by Wells Fargo as of November 20, 1995.
  • 2.6% of outstanding First Interstate shares held by Wells Fargo in a fiduciary capacity.
  • $1.9 billion in debt issued by the Regents of the University of California and held by First Interstate Bank of California.
  • $122 million outstanding in construction and other loans made to the Regents by First Interstate Bank of California.
  • $671,000 in service fees and other charges incurred by the Regents for deposit accounts with First Interstate Bank of California since January 1, 1994, through September 30, 1995.

Sources:

  • Business Wire: "Wells Fargo & Co. Files Exchange Offer for First Interstate Bancorp."
  • SEC Document: "Wells Fargo & Co. 14-1 Document."
  • Wells Fargo Press Release: "Wells Fargo Announces Exchange Offer for First Interstate Bancorp Shares."