BANKING & FINANCE - Nov. 15, 1995

Wells Fargo, First Bank Stocks Decline: The rival suitors for First Interstate Bancorp lost ground on Wall Street, as investors may be reacting to the prospect of a drawn-out battle, analysts said. Wells Fargo & Co. shares slid $4.125 on Tuesday, closing at $206.25. That was on top of a $5 drop Monday, the day that San Francisco-based Wells increased its hostile bid for Los Angeles-based First Interstate to two-thirds of a share from 0.65 share and announced various other actions to try to break up the Los Angeles bank’s planned marriage with First Bank System Inc. of Minneapolis. First Bank’s shares fell 75 cents to $52.25, and First Interstate shed $2.50 to $130.875, all in trading on the New York Stock Exchange. At Tuesday’s prices, the Wells bid was worth $137.50 a share and First Bank’s, $135.85. Carol Levenson, a Chicago-based bond analyst, said Wells might have to include some cash in its offer to persuade investors that it is superior to the First Bank proposal.