Wachovia agreed to sell itself to Wells Fargo in a $15.1 billion deal proposed today. Ironically, this wasn’t the bank’s first choice. An original deal with Citigroup had been in the works, but was dismissed when Wachovia made a more attractive offer.
“The Citigroup deal would have been done with the help of the Federal Deposit Insurance Corp., but the Wells Fargo deal for Wachovia deal will be done without it”, the Sun-Sentinel said.
Wachovia Corporation stockholders will be receiving an almost 80% premium over the stock’s closing price yesterday. Shareholders will be awarded 0.1991 shares of Wells Fargo stock for every Wachovia share.
But although Wachovia’s board of directors approved the merger, they’re not out of the woods yet. According to the Sun-Sentinel, “The deal is still subject to Wachovia shareholder and other regulatory approvals.” As a result, the deal might not be completely finalized until the end of the year.
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