Wells Fargo raises offer for California rival to $10.9bn
Relaunching the most expensive hostile takeover bid in the history of American banking, Wells Fargo & Co yesterday increased its offer for its rival in the California market, First Interstate, by nearly $900m to $10.9bn.
First Interstate had rebuffed the original Wells Fargo bid, made on 13 October, and last week announced it had opted instead for a friendly merger with Minneapolis-based First Bank Systems worth $10.3bn.
Either merger would represent the most expensive takeover ever between US banks, surpassing the $10bn price tag of the proposed Chemical Bank- Chase Manhattan combination. It is the hostile nature of Wells Fargo's approach that has most suprised the industry, however, which until now has been used only to friendly acquisitions.
In a letter to the board of First Interstate yesterday, Paul Hazen, chairman of Wells Fargo, said: "Our offer is superior to First Bank Systems's and we believe it is too compelling to ignore."
Simultaneously, Wells Fargo is acting in the courts to challenge provisions in the proposed takeover by First Bank that would entail large penalties if either side decided to pull out. Mr Hazen also warned that First Interstate shareholders would be solicited to vote in favour of the revised Wells Fargo offer.
Under its revised offer, Wells Fargo, America's 17th-largest bank and number two in California, would exchange roughly two-thirds of one of its shares for each share of First Interstate stock, more than its original offer of five-eighths of a share.
If it succeeds in consuming First Interstate, Wells Fargo, with 861 branches, could close many of the overlapping branches and cut costs by an estimated $700m.
Justin Bieber was one of the hardest hit
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...