This agreement represents a compelling valueįor Wachovia shareholders, said Wells Fargo Chairman Dick Kovacevich. The market presence and composition of our businesses, along with our service-oriented cultures, are extraordinarilyĬomplementary and this combination creates great potential for sustained stability and growth. This deal enables us to keep Wachovia intact andĬompany, without government support. Todays announcement creates one of the strongest financial firms in the world and is great for all Wachovia constituencies: our shareholders, customers, colleagues and communities. Steel, President and CEO of Wachovia Corp. We at Wachovia have great admiration and respect for the people and businesses at Wells Fargo and we are extremely pleased to join forces with this outstanding company, said Robert K. To maintain its strong capital position, Wells Fargo intends to issue up to $20 billion of new Wells Fargo securities, primarily common stock. Wells Fargo expects to incur merger and integration charges of approximately $10īillion. The acquisition is expected to exceed Wells Fargos internal rate of return goal andĪdd to Wells Fargos earnings per share in the first year of operations, excluding integration costs, write downs, transaction charges, and credit reserve build. Wells Fargo will record Wachovias credit-impaired assets at fair value. The agreement requires the approval of Wachovia shareholders and customary approvals of regulators. Wachovia has almost 2.2 billion common shares outstanding. Share for a total transaction value of approximately $15.1 billion. The transaction, based on Wells Fargos closing stock price of $35.16 on October 2, 2008, is valued at $7.00 per Wachovia common Will receive 0.1991 shares of Wells Fargo common stock in exchange for each share of Wachovia common stock. Under terms of the agreement, which has been approved unanimously by the boards of both companies, Wachovia shareholders The transaction, Wells Fargo will acquire all of Wachovia Corporation and all its businesses and obligations, including its preferred equity and indebtedness, and all its banking deposits. Under the agreement, Wells Fargo will acquire all outstanding shares of common stock of Wachovia in a stock-for-stock transaction. SAN FRANCISCO and CHARLOTTE, October 3, 2008 Wells Fargo & Company (NYSE:WFC) and Wachovia Corporation (NYSE:WB) said today they have signed aĭefinitive agreement for the merger of the two companies including all of Wachovias banking operations in a whole company transaction requiring no financial assistance from the Federal Deposit Insurance Corporation (FDIC) or any other
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