BANKING & FINANCE - Dec. 27, 1995

First Bank Challenges Wells on Timing: In the latest skirmish in the takeover battle for First Interstate Bancorp, First Bank System Inc. has accused rival Wells Fargo & Co. of trying to mislead investors by asserting that its hostile bid can be completed as quickly as First Bank’s friendly merger deal. Although both suitors for Los Angeles-based First Interstate have been notified by the Federal Reserve Bank in their home districts that their merger applications have been accepted and will be acted upon by mid-February, First Bank said antitrust obstacles will slow down the Wells proposal. Wells stood by its statement last week that it is on the same track for approval as First Bank, a Wells spokeswoman said. The question of timing may be crucial to First Bank, considering that the value of its bid is $11.37 per share--or 8.6%--below the Wells offer at Tuesday’s prices. Anything that Minneapolis-based First Bank can do to cast doubt on Wells’ ability to pull off the takeover could help compensate for a price differential when First Interstate stockholders vote on the deal in February or March.