Rival bid for First Interstate looks likely.One expert says a bidding war could break out A rival bid to Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. & Co.'s takeover proposal for First Interstate Bancorp First Interstate Bancorp was a bank based in the United States that was taken over in 1996 by Wells Fargo. It was headquartered in Los Angeles. The name has continued to be used in the banking world by used after the merger by First Interstate Bank who had been using the may be imminent, industry sources told the Business Journal last week. Downtown L.A.-based First Interstate continued its silence as rumors circulated that executives from more than one out-of-state bank had been burning the midnight oil working on a bid for First Interstate. Lloyd Greif, president of L.A.-based investment firm Greif & Co., said late last week he expects an out-of-state bank to make public a bid for First Interstate very soon. An "old-fashioned bidding war" like those of the 1980s was likely, Greif added. San Francisco-based Wells Fargo announced on Oct. 18 an unsolicited offer of 0.625 shares of Wells stock for each share of First Interstate in a deal valued at $10.1 billion to $10.8 billion. First Interstate Chairman William E.B. Siart said he was deeply disappointed by the offer, but would consider it and respond. But it is widely reported that First Interstate has spent the last few weeks looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a white knight White Knight falls off his horse every time it stops. [Br. Lit.: Lewis Carroll Through the Looking-Glass] See : Awkwardness White Knight invents clever objects that never work. [Br. Lit. to rescue it from Wells Fargo's embrace. Norwest Corp. and First Bank System Inc., both of Minneapolis, and Banc One of Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. , were deemed the most likely potential bidders for First Interstate, sources said. All of those banks have overlapping operations with First Interstate in Western states and could cut costs. Mega-banks Citicorp of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and NationsBank of Charlotte, N.C., were also mentioned as possible suitors. Greif said although the East Coast banks did not overlap with First Interstate as much as other suitors, a combination with one of those banks could create a coast-to-coast banking operation. The resulting institution would have such a national presence that it could generate revenue and earnings growth to make a deal with First Interstate worthwhile. But other sources doubted Citicorp or NationsBank would bid. "It doesn't pencil out," said Campbell Chaney, an analyst with Chicago-based investment firm Rodman & Renshaw Inc. "Citicorp is out," said another source, who asked not to be identified. Norwest favored James Marks, bank analyst with San Francisco-based investment firm Sutro & Co., said Norwest was the suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) most likely to come forward with an offer and Nations-Bank and Bane BANE. This word was formerly used to signify a malefactor. Bract. 1. 2, t. 8, c. 1. One were the second most likely to bid. "The others are long shots," Marks said. Sources said last week that First Bank System Chairman and Chief Executive Officer John Grundhofer was keen on trying to buy or merge with First Interstate. But some sources discounted the $36 billion-in-assets bank's ability to make a run at $55 billion-in-assets First Interstate. Grundhofer was formerly vice chairman of Wells Fargo and its top executive in L.A. in the late 1980s. He still has strong ties to the Los Angeles area, and may be interested in keeping a strong L.A. presence if the two banks were to merge operations, sources said. Brent Erensel, bank analyst for New York investment firm UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities, observed, "I think it's pretty clear that First Interstate is exploring all of its options and I think everybody, except Wells Fargo, wants to measure the pace and go slow." He added that if Wells Fargo gets First Interstate, he anticipates deep cuts in First Interstate's operations. Wells Fargo officials have stated they expect to reduce expenses by about $800 million a year if First Interstate is combined with Wells Fargo. (A First Interstate spokesman said that $25 billion in assets bank had operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $862 million in 1994.) |
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