Filed under: Deals, JPMorgan Chase (JPM), Jones Soda (JSDA), Wells Fargo (WFC), Bear Stearns Cos (BSC), Federal Reserve
In an article in the San Fransisco Business Times, Wells Fargo (NYSE: WFC) CEO John Stumpf spoke about how he wouldn’t at all mind getting involved in a Federal Reserve brokered deal, like JP Morgan Chase (NYSE: JPM) did with Bear Stearns (NYSE: BSC).
According to the article: “I would not be averse to a Fed-assisted transaction,” Stumpf stated, adding that any deal would have to meet the company’s traditional acquisition targets and benefit the bank’s acquired customers. Wells has built a reputation as a disciplined buyer over the years, focusing on deals that generate at least a 15% internal rate of return and contribute to the bottom line within three years.
“Fixer-uppers don’t bother us,” he added.
Who wouldn’t want to be part of a deal like this? It’s become pretty obvious that JP Morgan Chase got an breathtaking deal to buy Bear Stearns, and now Wells Fargo wants to join the party.
If Wells Fargo is able to swing a great deal by buying some massive and beleaguered financial company for less than that company’s building is worth, like what happened with Bear Stearns, then investors may want to take a long hard look at Wells Fargo stock. This might be the potential catalyst needed to drive the stock up in the coming months.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer’s fund has no position in any stock mentioned, as of 3/25/08
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