Wells Fargo to Acquire Brenton Banks

Wells Fargo & Co. said it agreed to buy Brenton Banks Inc. and a subsidiary for $264.5 million in stock, boosting its presence in Iowa. Wells will exchange about $255.7 million worth of stock for all outstanding shares of Brenton Banks Inc. and an additional $8.8 million for stock in its Brenton Bank subsidiary owned by outside shareholders. The purchase values Brenton Banks shares at $12.56 each, a 6% discount to the stock at Thursday’s close. Brenton Banks shares fell $1.13 to close at $12.13 on Nasdaq. Wells shares rose 19 cents to close at $43.06 on the NYSE. The purchase gives San Francisco-based Wells Fargo a bank with 43 branches in Iowa and $2 billion in assets. A change in Iowa law earlier this year opened the door for Wells Fargo to make the purchase, according to Wells Fargo.