Wells Fargo buying Placer Sierra |
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Published
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Wed, 10 Jan 2007 13:15
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SACRAMENTO, Calif. (AFX) - Financial services provider Wells Fargo & Co. said it will buy regional banker Placer Sierra Bancshares in a stock swap valued at about $645 million.Late Tuesday, the San Francisco-based company said Placer shareholders will receive Wells Fargo common stock based on average volume and pricing for each of the 20 consecutive trading days ending on the fifth trading day immediately before the deal's closing date.If the Wells Fargo measurement price is between about $32.59 and $39.82, the exchange ratio will be determined by dividing $28 by the measurement price. If the Wells Fargo measurement price is equal to or less than $32.58, then the exchange ratio will be 0.8595, and if it is equal to or more than $39.82, then the exchange ratio will be 0.7032.Placer Sierra Bancshares is a Northern California-based bank holding company for Placer Sierra Bank, with assets of $2.6 billion and more than 650 employees serving consumers and small- and medium-sized businesses from 50 locations throughout California. The bank has 32 branches in eight counties of Northern California and 18 locations in Southern California. Placer Sierra posted 2005 earnings of $24.8 million on sales of $117.5 million.Wells Fargo has $483 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,100 stores across North America and internationally. Wells Fargo posted 2005 profit of $7.67 billion on sales of $40.53 billion.The transaction is expected to close by the middle of the year, subject to regulatory approvals. The combined company will have nearly 3,200 banking locations in 23 states and 6,600 ATMs.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Wells Fargo to buy Placer Sierra Bancshares for approximately 645 mln usd 