Wells Fargo buys out Wachovia

In earlier discussions today between Wells Fargo and Wachovia executives, and a conference call to that affect, Wells Fargo executives stated that Wells Fargo agreed to acquire Wachovia for $7.00 per share for Wachovia, total consideration just slightly over $15 billion. Wachovia had already agreed to sell its banking operations to Citigroup which was leaning on assistance from the FDIC. The new deal encompasses not only the banking portion of Wachovia, but the full company including the investment bank and brokerage operations. Wachovia – Wells Fargo deal is a stock-based transaction with shares of Wachovia being exchanged to 0.19 share of Wells Fargo. The Wachovia – Wells Fargo deal was valued at around $15 billion dollars.

Wells Fargo’s position is as always conservative and when valuating the deal Wells Fargo executives were conservative in valuations and estimates. Wells Fargo is one of a few financial institutions that remains a strong financial position in today’s falling economy and the market.