First Interstate Bancorp said in a sharply worded statement Monday that its board of directors has urged shareholders to reject Wells Fargo & Co.'s latest hostile takeover proposal.
The board still believes a friendly merger with First Bank System Inc. of Minneapolis would best serve shareholders, the company said."We are convinced that this merger is a winning combination for the long-term benefit of our shareholders and the communities we serve," said First Interstate chairman and CEO William E.B. Siart.
"We believe it is unfortunate that a respected institution like Wells Fargo would jeopardize its reputation by ignoring our board of directors' carefully considered decision and choosing instead to recklessly pursue its hostile takeover proposal.
"We will not be deterred or distracted from completing our pending merger with First Bank on (shareholders') behalf," Siart said.
Wells Fargo, based in San Francisco, and First Bank are both offering stock to shareholders of Los Angeles-based First Interstate.
Wells Fargo raised its hostile bid on Nov. 13, offering to exchange two-thirds of a share of its stock for each share of First Interstate, higher than its original bid of five-eighths of a share. The bank also said it would take the offer directly to shareholders and seek to oust First Interstate's board and dismantle its anti-takeover measures.
Wells Fargo's offer is worth $10.69 billion, or $141.17 per share, at Friday's closing share price. First Bank's offer was worth $10.44 billion, or $137.80 per share.