By Emily Glazer
Wells Fargo & Co. Chief John Stumpf said the bank may
finance other General Electric Co. deals as they unfold, but he
wouldn't make any predictions at a financial conference Friday
about whether the bank would be a buyer.
Mr. Stumpf, chairman and chief executive of the bank, said any
deals could still be a "long way" off.
Wells Fargo recently announced its plans to purchase $9 billion
in property loans from GE alongside Blackstone, which is buying $14
billion of property loans and real estate. Wells Fargo provided $4
billion of financing for part of Blackstone's purchase of the
loans.
Mr. Stumpf said it "wouldn't even be appropriate" to say much
about the remaining GE sales on the block as the conglomerate
dismantles one of the largest U.S. banks, but said it "wouldn't
surprise him" if the bank financed "something" for a customer.
The Wall Street Journal reported in April that Wells Fargo was
in talks to buy all or part of GE's biggest lending operation
consisting of $74 billion of loans to U.S. businesses. The bank was
among other bidders in talks with GE, people familiar with the
matter have said.
Mr. Stumpf added Wells Fargo is a "value buyer" and not likely
to go into a bidding war.
"If we don't do anything else, this is a huge win for us," Mr.
Stumpf said, referring to the commercial real estate deal.
Mr. Stumpf said the San Francisco bank hadn't planned for the GE
deal this year and it "came together fairly quickly." Wells Fargo
examined the portfolio and chose the loans it wanted that are
similar to its current portfolio on loan to value, pricing and
locations--and in some cases the same customers, Mr. Stumpf
said.
Wells Fargo's portfolio includes performing loans mostly in the
U.S., U.K. and Canada. It has been building up its real estate
operations in Canada and the U.K. over the past year.
The recent deal "was a win for Blackstone, a win for GE and a
win for us, " Mr. Stumpf said. "And a large, meaningful competitor
[GE] exits the market."
Write to Emily Glazer at emily.glazer@wsj.com
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