Wachovia Switches to Wells Fargo Deal
Wachovia Corp. announced Friday it was jilting Citigroup in favor of a $7-per-share offer from Wells Fargo & Co.
Four days ago, Wachovia agreed in principal to a $1-per-share offer from Citigroup for its banking operations, a deal that would have required $42 billion in federal assistance.
Thursday night, however, Wells Fargo presented Wachovia with a stock-for-stock merger transaction that keeps the company’s banking and investment businesses under one roof, the company said.
A Wells Fargo-Wachovia merger "creates one of the strongest financial firms in the world," Wachovia President and Chief Executive Officer Robert Steel said in a statement.
"This deal enables us to keep Wachovia intact and preserve the value of an integrated company, without government support," he said.
"Our service-oriented cultures, are extraordinarily complementary and this combination creates great potential for sustained stability and growth."
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