Wells Fargo Wachovia Merger Agreement

Wachovia`s board of directors rejected SunTrust`s offer and supported the merger with First Union. SunTrust continued its hostile takeover bid attempt, which led to a fierce battle between SunTrust and First Union over the summer. [19] Both banks increased their bids on Wachovia, ran newspaper ads, sent letters to shareholders, and launched court battles to challenge each other`s takeover bids. [20] On August 3, 2001, Wachovia shareholders approved First Union`s agreement, rejected SunTrust`s attempts to elect a new board of directors for Wachovia, and ended SunTrust`s hostile takeover attempt. [21] On October 3, 2008, Wachovia`s Board of Directors voted to accept Wells Fargo`s offer and the parties signed a binding merger agreement. When Citigroup became aware of it, it informed Wachovia and Wells Fargo that Citigroup considered the merger agreement to be a violation of the exclusive agreement between Citigroup and Wachovia. Citigroup has asked Wachovia and Wells Fargo to close their planned transaction. Citigroup sent a separate letter to the Federal Reserve on the same day protesting Wells Fargo`s request to the Federal Reserve to acquire Wachovia for a number of reasons. In March 2010, Wachovia acknowledged „serious and systemic“ violations of the Banking Secrecy Law, which allowed Mexican and Colombian cartels[70] to launder $378.4 billion between 2004 and 2007, the „largest violation of bank secrecy.“ [71] It negotiated a de stay of proceedings agreement with the Department of Justice to resolve criminal charges for intentional failure to establish an effective anti-money laundering program. [23] „The FDIC supports its previously announced agreement with Citigroup,“ Sheila Blair, the president of the FDIC, said in a statement. Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Wachovia shareholders will receive 0.1991 common shares of Wells Fargo in exchange for each common share of Wachovia. The transaction, which is based on Wells Fargo`s closing price of $35.16 on October 2, 2008, is valued at $7.00 per common share of Wachovia, for a total value of approximately $15.1 billion.

Wachovia has nearly 2.2 billion common shares outstanding. The agreement requires the approval of Wachovia`s shareholders and the usual approval of regulatory authorities. The following illustrates the company`s major mergers and acquisitions and its historical predecessors (up to the merger of Wachovia and First Union in 2001). .

Dieser Beitrag wurde veröffentlicht in Allgemein von admin. Speichern Sie den permalink als Bookmark.