A New Deal for First Interstate : Attack, Counterattack
First Interstate Bancorp has received support from elected officials and interest from other banks in its attempt to fend off a $10.9-hostile takeover bid made last month by Wells Fargo & Co. Its efforts paid off Monday when it rejected Wells’ offer and announced a proposed $10.1-billion merger with First Bank System Inc. A look at the tumultuous days between the two announcements:
Oct. 18: In a move that would double its size, San Francisco-based Wells Fargo & Co. launches a hostile takeover bid, valued at the time at $10.9 billion, for First Interstate Bancorp. First Interstate officials respond coolly and say they will explore a wide range of alternatives.
Oct. 18-19: First Interstate Chief Executive William E.B. Siart and fellow board members are slapped with a handful of shareholder lawsuits filed in Los Angeles County Superior Court, accusing them of breaching their fiduciary duty by rebuffing Wells Fargo.
Oct. 19: Los Angeles Mayor Richard Riordan blasts Wells’ unsolicited bid, saying it could be devastating to the region. He says he’ll support hometown bank First Interstate’s efforts to resist.
Oct. 23: Wells turns up the heat on its takeover target, announcing it will seek clearance under federal antitrust law to start buying First Interstate stock.
Oct. 25: A broad selloff of bank stocks--prompted partly by fears about problem consumer loans--hits California’s three largest banks hard and pares more than half a million dollars off the paper value of Wells’ bid.
Oct. 26: In a move analysts say could force Wells to sweeten its offer, First Interstate invites two major regional banks, Norwest Bancorp of Minneapolis and Banc One Corp. of Columbus, Ohio, to inspect its books with an eye toward a counteroffer.
Nov. 2: San Francisco Mayor Frank Jordan announces his opposition to Wells’ attempt to take over First Interstate Bancorp, saying the merger would cost thousands of California jobs and hurt consumers and small businesses.
Nov. 6: First Interstate rejects Wells’ offer and announces it will merge with First Bank System Inc. of Minneapolis in a deal valued at $10.1 billion.
Source: Times reports
Researched by JENNIFER OLDHAM / Los Angeles Times
