Wells Fargo 2012 Annual Report Download - page 93

Exchange Act of 1934 including a limitation on the daily volume
of repurchases. Rule 10b-18 imposes an additional daily volume
limitation on share repurchases during a pending merger or
acquisition in which shares of our stock will constitute some or
all of the consideration. Our management may determine that
during a pending stock merger or acquisition when the safe
harbor would otherwise be available, it is in our best interest to
repurchase shares in excess of this additional daily volume
limitation. In such cases, we intend to repurchase shares in
compliance with the other conditions of the safe harbor,
including the standing daily volume limitation that applies
whether or not there is a pending stock merger or acquisition.
In connection with our participation in the Capital Purchase
Program (CPP), a part of the Troubled Asset Relief Program
(TARP), we issued to the U.S. Treasury Department warrants to
purchase 110,261,688 shares of our common stock with an
exercise price of $34.01 per share expiring on October 28, 2018.
The Board authorized the repurchase by the Company of up to
$1 billion of the warrants. On May 26, 2010, in an auction by the
U.S. Treasury, we purchased 70,165,963 of the warrants at a
price of $7.70 per warrant. We have purchased an additional
986,426 warrants, all on the open market, since the U.S.
Treasury auction. At December 31, 2012, there were
39,109,299 warrants outstanding and exercisable and
$452 million of unused warrant repurchase authority.
Depending on market conditions, we may purchase from time to
time additional warrants in privately negotiated or open market
transactions, by tender offer or otherwise.
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