Friday, October 3, 2008

Wells Fargo Buys Wachovia for $15.1 Billion in Stock Transaction

Wells Fargo & Co. has agreed to buy Wachovia Corp. for $15.1 billion in a stock transaction. It's a deal that would create the largest retail bank in the United States and derail Citigroup Inc.’s efforts to buy Wachovia for $2.1 billion.

San Francisco-based Well Fargo (NYSE:WFC) said this morning it intends to buy all operations of Charlotte, N.C.-based Wachovia with no need for financial assistance from the Federal Deposit Insurance Corp. or other government agencies.

Wells Fargo would acquire Wachovia (NYSE:WB) will buy all of Wachovia’s businesses and obligations, including its preferred equity and debt, and all its banking deposits.

Wachovia shareholders will receive 0.1991 shares of Wells Fargo common stock in exchange for each share of Wachovia. The transaction is valued at $7 a Wachovia share. Wells Fargo shares closed at $35.16 on Thursday, and Wachovia ended the day at $3.91 a share.

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