Wells Fargo & Co. to purchase National Bancorp of Alaska, Inc. for 3.32 times revenue

Weekly Corporate Growth Report, Jan 10, 2000

The Deal: In an attempt to expand into Alaska, Wells Fargo & Company, the seventh largest bank in America, has agreed to acquire National Bancorp of Alaska, Inc., Alaska's biggest bank, for $907 million in stock. Wells fargo offered $30 a share for each share of National Bancorp. The offer was far below the company's stock price of $40 on the day the announcement was made. Since then, National Bancorp's shares have fallen, and closed at $27.38 on January 4, 2000.

Discussion: National Bancorp of Alaska is the holding company for National Bank of Alaska. The bank serves individuals, corporations, and government bodies and organizations. It offers retail services, including checking and savings accounts, loans, Visa credit cards, and automated teller machines; estate planning and settlement; administration of personal and employee-benefit trusts and investment agency accounts; and custodianships. National Bank of Alaska operates more than 50 banking offices, three loan offices, and nearly 60 electronic branches throughout the state.

Wells Fargo, which recently merged with Norwest to create a new, improved company has more than 6,000 locations across the U.S. The company offers a full range of consumer and business banking services, as well as investment services and products, consumer loans, and international trade.

Although Wells Fargo had previously exited the home mortgage business, Norwest brought the new Wells Fargo the U.S.'s largest mortgage banking operation. The Norwest name will be replaced with the Wells Fargo name by early 2000.