Wells Fargo and Co. has presented Wachovia Corp. with a signed and board-approved offer to purchase Wachovia as an intact company and without government assistance in a stock-for-stock merger transaction. Wachovia has approved the offer.
Under the agreement, each share of Wachovia common stock will be exchanged for 0.1991 shares of Wells Fargo common stock, representing a value of $7 per share, based on Wells Fargo's closing stock price Oct. 2. Wells Fargo will acquire all of Wachovia and all its businesses and obligations, including its preferred equity and indebtedness, and all its banking deposits.
According to Wachovia, the newly merged firm will have the largest deposit base in the country – creating a coast-to-coast banking franchise for consumers.
Charlotte, N.C., will be the headquarters for the combined company's East Coast retail and commercial and corporate banking business. St. Louis will remain the headquarters of Wachovia Securities.
Sources: Wells Fargo and Co., Wachovia Corp.