Wells Fargo Acquires Wachovia for $15.1 Billion
Wachovia has announced that on Friday it will be acquired by Wells Fargo. The Deal will be worth $15.1 billion (all stock deal). Earlier in the week, Citigroup announced intentions to buy Wachovia’s banking operations for $2.16 billion. The key difference between the two deals is that the Citigroup purchase would have included government assistance but the Wells Fargo acquisition will not.
This is good news for Wachovia share holders whose stock in Wachovia closed at $3.91 on Thursday, but is now valued at around $7 a share. The reason for this value increase is the acquisition in which Wachovia stock holders will receive .1991 of Wells Fargo stocks for every one of the Wachovia stocks. Wells Fargo expects earnings to be up after the first year the acquisition closes.
Information Provided by: The Miami Herald
This entry was posted on Friday, October 3rd, 2008 at 6:10 am and is filed under Financial News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
