U.S. News

Wells Fargo to Buy Greater Bay Bancorp for $1.5 Billion


Wells Fargo agreed to buy Greater Bay Bancorp Friday for about $1.5 billion in stock.

The move would allow Wells Fargo to expand its market share in the San Francisco Bay area, which is of strategic importance to the financial services company.

The deal, which would have to be approved by shareholders, is expected to be completed in the fourth quarter of 2007. 

The amount Greater Bay shareholders will receive will be based on a measurement price calculated by taking the average daily volume price of Wells Fargo shares for the 10 days before the Greater Bay shareholder meeting to approve the transaction.

A assuming a measurement price between $32.175 and $39.325, the total value of the deal would be about $1.5 billion.

“This path is clearly in the best long-term interest of our shareholders, our clients, our employees, and the communities that we serve," Greater Bay President and CEO Byron A. Scordelis said.