Wells Fargo To Buy Mich. Bank Co.
TRAVERSE CITY, Mich. (AP) _ Wells Fargo & Co. is purchasing bank holding company Michigan Financial Corp. for about $206 million in stock.
The acquisition, scheduled to be completed in the first quarter of next year, requires approval from banking regulators and Michigan Financial shareholders.
Under the deal, Wells Fargo will issue about 4.4 million shares of its common stock in exchange for all of Michigan Financial’s stock.
Shares of Wells Fargo dropped 75 cents, to $46.75, in afternoon trading on the New York Stock Exchange. Shares of Michigan Financial rose $2.56 1/4 to $32.06 1/4 in trading on the Nasdaq Stock Market.
Michigan Financial chairman Howard Cohodas said becoming part of Wells Fargo would enable Marquette-based Michigan Financial to give its customers ``more convenience and a broader array of products and services.″
None of the Michigan Financial’s 34 branches are expected to close as a result of the buyout, said J. Lanier Little, regional president for Norwest Banks in Wisconsin and Illinois, a Wells Fargo subsidiary. No layoffs are anticipated, he added.
Michigan Financial has assets of $834 million and 675 employees. It also owns Michigan Financial Life Insurance Company, which underwrites credit life, accident and health insurance for the banks’ customers.
San Francisco-based Wells Fargo, a $207 billion financial services company providing banking, investments, insurance, mortgage and consumer finance services, has almost 6,000 banking outlets in 21 states.