Wells Fargo Gains After $12 Billion Bid for Wachovia Beats Citi

[PBS Poll-435]

By David Mildenberg and Bradley Keoun

Oct. 10 (Bloomberg) -- Wells Fargo & Co. jumped 6.6 percent in U.S. trading after sealing an $11.7 billion deal to acquire Wachovia Corp., creating the largest U.S. bank by branches.

Wells Fargo and Wachovia said late yesterday they will stick to the terms of the all-stock deal they struck Oct. 3, fending off a challenge from Citigroup Inc., which had made its own offer four days earlier. Wachovia jumped 35 percent.

The deal marks Wells Fargo Chairman Richard Kovacevich's biggest takeover since he led Minneapolis-based Norwest Corp.'s purchase of Wells Fargo 10 years ago. Like JPMorgan Chase & Co., which last month acquired Washington Mutual Inc., he took advantage of the worst financial crisis since the Great Depression to extend his geographic franchise.

``This merger should be the best of the bunch,'' said Deutsche Bank AG analyst Michael Mayo in a note to clients. ``The main issue -- and it is a big issue -- is how much the weaker U.S. housing, mortgage and consumer markets will take a toll.'' He rates the shares ''hold.''

http://www.bloomberg.com/apps/news?pid=20601103&sid=av.hS23aCQDw&refer=us

And Citi continues its 60 BILLION dollar suit against Wells Fargo...

[PBS Poll-435]

1. Anyone?

:shrug:

[PBS Poll-435]

2. ...

:shrug: