Wells Fargo Jumps on Proposed Share Redemption

Wells Fargo & Company (NYSE: WFC) today announced that on June 15, it will redeem all 80,000 outstanding shares of its 5.875% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series U. The redemption of the Redeemed Series U Preferred Shares will trigger the redemption of the 2,000,000 outstanding shares of the related depositary shares each representing a 1/25 interest in a share of Series U Preferred Stock. The redemption price will be equal to $25,000.00 per Redeemed Series U Preferred Share and $1,000.00 per Redeemed Series U Depositary Share. After giving effect to the redemption, no shares of the Series U Preferred Stock or the Series U Depositary Shares will remain outstanding.Because the redemption date is also a dividend payment date for the Series U Preferred Stock and the Series U Depositary Shares, the redemption prices noted herein do not include declared and unpaid dividends. Regular quarterly dividends will be paid separately in the customary manner on June 15, (which, due to the occurrence of a non-business day, will shift to June 16), to holders of record at the close of business on May 30.WFC shares amassed 50 cents to begin Wednesday at $76.47.