|
First Union denies rumors
|
 |
October 6, 2000: 6:47 p.m. ET
Bank takes rare step of denying it is in talks with Wells Fargo
|
NEW YORK (CNNfn) - First Union Corp., the No. 6 bank in the country, broke form Friday and made the unusual move of denying it is in talks with Wells Fargo.
First Union said in a statement there is "absolutely no truth to the rumor that First Union is or has been engaged in merger discussion with Wells Fargo."
The company said it issues the statement because the rumors were causing confusion among its employees.
"The reason we made an exception was an employee reason," said bank spokeswoman Mary Eshet. "We have such a large employee base in Charlotte and the television stations were reporting it and reporting it. We felt we needed to get the truth out."
First Union has 15,000 of its 70,000 employees in Charlotte, S.C.
The speculation began Monday when the New York-based Wall Street Letter, citing unnamed First Union managers and brokers, said Wells Fargo might buy First Union for $42 a share.
Wells Fargo is the No. 5 bank in the nation.
Shares of First Union (FTU: Research, Estimates) shares fell nearly 5 percent, or $1.56, on the news, to close at $31.19 on the New York Stock Exchange, where shares of Wells Fargo (WFC: Research, Estimates) were off $1.13, or 2 percent, at $46.56. 
-- from staff and wire reports
|
|
|
|
|
|
First Union
Wells Fargo
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
