BANKING & FINANCE - Dec. 1, 1995

Wells Fargo Accuses Rival Bidder of Inflating Stock: Wells Fargo & Co. accused First Bank System Inc.--its rival in the takeover battle for First Interstate Bancorp--of using stock buybacks to pump up the price of its shares. In a filing connected with its ongoing lawsuit against First Bank in Delaware Chancery Court, Wells said that immediately after announcing its merger agreement with First Interstate, First Bank bought back $125 million worth of its shares on the open market. The action “artificially inflated” First Bank’s stock price and “denied First Interstate’s stockholders the ability to accurately assess the market value of the proposed First Interstate-First Bank merger or to compare it to Wells Fargo’s exchange offer,” Wells said. Wells asked the court to compel First Bank to disclose its completed repurchases and stop buying back shares while Wells’ unsolicited offer is pending. First Bank executives could not be reached for comment, but the bank previously has denied wrongdoing and said it is pursuing a share repurchase program that was announced well before the First Interstate bid.