Thread: Wachovia Corp. - WB

Reports: Wachovia in talks with potential buyers
Sunday September 28, 9:28 pm ET
Reports: Wachovia in talks with potential buyers including Wells Fargo, Citigroup


NEW YORK (AP) -- At least two major banks were reportedly in talks Sunday to buy Wachovia Corp., the latest U.S. bank to be the focus of investor anxiety over mounting losses tied to toxic assets.
The New York Times reported on its Web site that Citigroup Inc. and Wells Fargo & Co. are bidding in a possible emergency takeover of Charlotte, N.C.-based Wachovia.

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The Wall Street Journal also listed Spain's Banco Santander SA as a possible bidder. Both papers cited people familiar with the talks who they did not name.

Wachovia spokeswoman Christy Phillips-Brown declined to comment on the reports, as did Citigroup spokeswoman Christina Pretto. Wells Fargo spokesmen could not be immediately reached for comment.

Wachovia's shares fell 27 percent in regular-session trading on Friday, and shed another 15 percent in after-hours dealings to end the week at $8.50, as investor worries heightened.

Wachovia's current problems stem largely from its acquisition of mortgage lender Golden West Financial Corp. in 2006 for roughly $25 billion at the height of the nation's housing boom. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of Pick-A-Payment loans, Golden West's specialty, which let borrowers skip some payments

But like many other banks, Wachovia stands to benefit from the passage of the government's proposed $700 billion rescue plan -- the details of which were emerging from Washington on Sunday.

This summer, Wachovia reported a $9.11 billion loss for the second quarter, announced plans to cut 11,350 jobs -- mostly in its mortgage business -- and slashed its dividend. Wachovia also boosted its provision for loan losses to $5.57 billion during the second quarter, up from $179 million in the year-ago period.

Earlier this month, Wachovia said it is on track to reduce securities and outstanding loans on its balance sheet by $20 billion this year, which will free up $1.5 billion in capital.

Additionally, Wachovia still expects to reduce expenses by $2 billion by the end of 2009.

However, the second-half expense benefit will be more than offset by $525 million to $650 million in severance and benefit costs related to previously announced job cuts, Wachovia said.

Trading at 2.60, nice job from anyone grabbing .90s yesterday!

2.95 now maybe 3.00 today!

Wells Fargo acquiring Wachovia for $15.1 billion
Friday October 3, 7:22 am ET
Wells Fargo to acquire Wachovia for $15.1 billion in all-stock deal; ends Citigroup talks

SAN FRANCISCO (AP) -- Wells Fargo says it is acquiring Wachovia in an all-stock transaction worth about $15.1 billion, as Wachovia ends talks with rival suitor Citigroup.

The deal, announced Friday, comes amid a turbulent time for banks and financial firms as they grapple with the ongoing credit crisis, which led to the recent bankruptcy of Lehman Brothers Holdings Inc. and the failure of Washington Mutual.

Wachovia shareholders will receive 0.1991 shares of Wells Fargo for every share of Charlotte, N.C.-based Wachovia stock they own, valuing Wachovia Corp. at about $7 per share.

Wells Fargo & Co. will record merger and integration charges of about $10 billion, but says it expects earnings to be boosted within the first year after the acquisition closes. No government assistance is part of the deal terms.

WB Wachovia Corp The end of a legal ceasefire in the battle for Wachovia loomed Wednesday, as the fight between Citi and Wells Fargo for the bank had yet to reach a conclusion. 5.07 -0.18 / -3.43%

WB Wachovia Corp Citigroup announced late Thursday that it was withdrawing from its bid to buy Wachovia which Wells Fargo will buy. 4.61 +1.01 / +28.06%

I personaly believe that WB is a great buy around these levels for a long term hold. It's not everyday that a company gets in the middle of a bidding war. Good luck to all who is in.

WB Wachovia Corp The Federal Reserve Board said Sunday it has approved the application by Wells Fargo to acquire the bank. The deal is expected to close by the end of the year. 5.44 +0.29 / +5.63%

WB Wachovia Corp The struggling bank posted a net loss of $23.9B, which included an $18.8B impairment charge related, in part, to the planned merger with Wells Fargo. 5.75 -0.34 / -5.58%