First Interstate execs exercise stock options: they cash in options as giant bank disappears.

DOWNTOWN L.A. - Top executives and directors of First Interstate Bancorp. exercised options to buy 770,885 shares worth between $61.6 million and $97.9 million in the weeks before L.A.'s biggest bank was bought by Wells Fargo & Co.

Twenty former top executives, including then-chairman and CEO William E. B. Siart and directors of First Interstate cashed in on the options in March, according to CDA/Investnet Inc., a Fort Lauderdale, Fla.-based investment adviser.

The options allowed the First Interstate officials to buy stock at from $140 to $80 below the trading price in March. First Interstate stock has increased in price in recent years, and really soared after Wells Fargo launched its takeover bid last October.

On April 1, Wells Fargo completed its takeover of First Interstate.

First Interstate shareholders received 0.667 share of Wells Fargo stock for every First Interstate share they held on April 1.

In the weeks before the deal closed, top First Interstate executives exercised options to buy 770,885 shares at lower prices.

Top officials and directors of major corporations are typically given the option to buy stock at or below the current market price as an incentive to increase stock value and motivate the executives.

The First Interstate options, all of which were exercised in March, gave option holders the right to buy First Interstate stock - which was trading between $158 and $167 a share in March - the right to buy it at between $18.50 and $83.88 a share.

Many former executives and directors exercised their options and then sold all or most of their First Interstate stock before it was converted to Wells Fargo stock.

But some First Interstate officials exercised options to buy the stock at a lower price and then held onto it. Those officials then received Wells Fargo stock for their shares on April 1.

Siart exercised the largest number of options in March - buying 254,750 shares of First Interstate at $33.50 to $80.38 a share.

From March 6 to March 28, Siart sold 206,000 shares at prices that ranged from $159.79 to $166.50 a share.

At the end of March he owned 102,831 shares of First Interstate.

Edward M. Carson, who was CEO prior to Siart, exercised the second highest number of options in March - on 167,000 shares - to buy stock at between $33.50 and $50 a share, according to CDA/Investnet.

Carson sold 217,000 shares at between $158 and $167.63 a share between March 5 and March 13. At the end of March, Carson still held 35,373 shares of First Interstate.

The bank official with the third most options was Bruce G. Willison, former CEO of First Interstate of California.

He exercised the right to buy 96,000 shares of First Interstate stock at prices between $33.50 and $80.38 a share. At the end of March, Willison owned 27,787 shares.

Last week H.F. Ahmanson & Co., parent of Home Savings of America, announced it had hired Willison to replace Fredric Forster as president of the thrift holding company.

Both Willison and Siart did not take jobs with Wells Fargo. Carson last week took a seat on Wells' board of directors.