MANHATTAN (CN) - Wachovia will sell itself to Wells Fargo for $15.1 billion in stock, the bank said this morning. The deal will be done without federal assistance, unlike the previously proposed acquisition by Citigroup, which would have involved the Federal Deposit Insurance Corp.
Wachovia shareholders will get 0.1991 shares of Wells Fargo for every Wachovia share they own. This values Wachovia shares at about $7, an 80% premium over its Thursday closing price of $3.91 - down from $10 just a week ago.
Wachovia's board approved the deal Thursday night. It is subject to approval by shareholders and regulators. Wells Fargo said it expects to close by the end of the year.
Wachovia reported a $9.1 billion in the second quarter this year, and said it would lay off 11,350 workers, most of them in its mortgage division.
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