Wachovia announced intentions to sell its retail bank, corporate and investment bank
and wealth management businesses to Citigroup. Wachovia Corporation will
remain a public company with two main operating subsidiaries: Wachovia
Securities, the nation’s third largest brokerage firm, and Evergreen Asset
Management, a leading provider of asset management services.
“During recent weeks, the financial landscape has changed significantly
and presented us with unprecedented challenges,” said Robert K. Steel, CEO
and President of Wachovia. “Today’s announcement is the best alternative
for the company, enabling a resolution on the Golden West portfolio.”
Under terms of the transaction, Citigroup will pay $2.1 billion to
Wachovia and assume the senior and subordinated debt of Wachovia
The transaction is expected to close before year-end. It has been
approved by directors of both companies and is subject to shareholder
approval of Wachovia and the appropriate regulatory approvals.
Customers of both companies should continue banking as usual, and feel
confident that their deposits are secure. Also, employees and vendors
should continue to operate business as usual.
At this time, there are no changes to Wachovia’s board of directors and
two Wachovia directors will join Citigroup’s board.
Wachovia Corp. will remain headquartered in Charlotte, N.C. Wachovia
Securities will continue to be headquartered in St. Louis, MO. Citigroup
will headquarter the retail bank in Charlotte and the investment bank in
Wachovia’s investment bankers were Goldman Sachs, Perella Weinberg
Partners and Wachovia Securities, and its legal advisors are Sullivan &
Cromwell and Simpson Thacher & Bartlett.
Wachovia Corporation (NYSE: WB) is one of the nation’s largest
diversified financial services companies, with assets of $812.4 billion and
market capitalization of $33.5 billion at June 30, 2008. Wachovia provides
a broad range of retail banking and brokerage, asset and wealth management,
and corporate and investment banking products and services to customers
through 3,300 retail financial centers in 21 states from Connecticut to
Florida and west to Texas and California, and nationwide retail brokerage,
mortgage lending and auto finance businesses. Globally, clients are served
in selected corporate and institutional sectors and through more than 40
international offices. Our retail brokerage operations under the Wachovia
Securities brand name manage more than $1.1 trillion in client assets
through 14,600 financial advisors in 1,500 offices nationwide. Online
banking is available at wachovia.com; online brokerage products and
services at wachoviasec.com; and investment products and services at