• No Merger- What's Next?
  Apr. 3, 2000

• Zions Shareholders Vote Down Merger
  Mar. 31, 2000

• Zions-First Security Merger Update
  Mar. 3, 2000

• BancWest To Acquire Branches in Merger
  Jan. 18, 2000

• Zions-First Security Bank Merger Announced
  June 6, 1999

April 10, 2000

Just a week after the First Security and Zions Bank merger deal fell apart, First Security has inked a deal with another partner. And it's a name you already know, coming soon to a branch in your neighborhood. News Specialist Scott Light has details.

The other bank in this deal is Wells Fargo, a giant especially in the west, and a respected bank in the corporate world. But this is a 180 degree turn from the Zions deal, which you might remember was called a merger of equals. This is a pure buy-out. Wells Fargo buys up First Security for more than $3-billion.

It was Friday, the last day of March, that the First Security - Zions deal breathed its last breath. Zions stockholders rejected the merger.

So, First Security CEO Spencer Eccles got on a plane and headed for Wells Fargo bank the very next day--Saturday. By Monday, he had a deal.

Spencer Eccles/CEO - First Security: "I'M NOW CONVINCED THAT DESTINY SPOKE."

If that's the case, Eccles also rejected destiny when Wells Fargo came calling in the past. Eccles wanted First Security and Zions to build a major banking power. Instead, he sold to an already established one.

Spencer Eccles/CEO - First Security: "IT IS NO SECRET THAT COMPANIES THAT HAVE CHOSEN TO COMBINE THEIR SOURCES CAN WORK MORE EFFICIENTLY TO PROVIDE THEIR CUSTOMERS WITH THE BEST PRODUCTS AND SERVICES AT THE BEST PRICES."

Dick Kovacevich/Pres. & CEO - Wells Fargo: "LOCAL PEOPLE WHO KNOW THEIR CUSTOMERS, WHO THEN HAVE THE ACCESS TO LARGE RESOURCES OF SERVICES AND OTHER EXPERTS.. THAT ALLOWS YOU TO HAVE A COMPETITIVE ADVANTAGE."

First Security's stock price has been falling since last summer. The other big hit was not meeting first quarter revenue expectations.

That made First Security a prime candidate for takeover, and an acquisition that Wells Fargo can easily absorb.

Jay Rice/Stock Expert: "A 260 BILLION DOLLAR COMPANY ACQUIRING A 26 BILLION DOLLAR COMPANY. FIRST SECURITY IS ABOUT A TENTH THE SIZE OF WELLS FARGO."

And that gives you some idea of just how big Wells Fargo is. The stock price further shows it. It stayed relatively flat at 39 a share. First Security was up a dollar a share.

We have no word on any job cuts or consolidations from this deal.