Wells Fargo, Norwest deal deemed ‘merger of equals’

The June agreement that will merge Wells Fargo & Co. and Norwest Corp. will spawn the Western Hemisphere’s most extensive and diversified financial-services network.

The press release billed the deal as a “merger of equals.” The move combines Minneapolis-based Norwest, with 765,783,000 shares of stock outstanding, priced at about $36 per share, and San Francisco-based Wells Fargo, with 85,137,000 shares outstanding, priced at $354 per share. Both entities compare favorably in market capitalization – the number of shares outstanding multiplied by the stock price – with Norwest at $27.6 billion and Wells Fargo at $30.1 billion.

Norwest’s Colorado spokeswoman, Cristie Drumm, explained…