Shareholders OK Wells Fargo merger

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Wednesday, Aug. 2, 2000 | 10:31 a.m.

SALT LAKE CITY -- First Security Corp.'s shareholders agreed Monday to allow the bank to be acquired by Wells Fargo & Co.

More than 90 percent of the 65 percent of the shares voting by proxy favored the merger, the Deseret News reported. Wells Fargo shareholder approval was not required because the deal is relatively small for Wells.

Under the terms of the agreement, First Security stockholders will get .355 of a share of Wells Fargo stock in exchange for each share of First Security. That works out to $14.75 a share, based on Wells Fargo's Monday closing price of $41.50.

If regulators approve the acquisition, the $3 billion deal is expected to be completed this fall.

The buyout of First Security by the San Francisco-based bank was announced April 9, just 10 days after First Security's deal with Zions Bancorporation fell through.

Depending on the number of branches it must sell to comply with antitrust law, the combined bank will be among the largest in Utah, Nevada, Idaho and New Mexico, with about $241 billion in assets and operations in 23 states.