According to a Wachovia news release, the company will retain its publicly traded status and will keep Wachovia Securities, the nation’s third largest brokerage firm, and Evergreen Asset Management. Under terms of the transaction, Citigroup will pay $2.1 billion to Wachovia and assume the senior and subordinated debt of Wachovia Corporation.
“During recent weeks, the financial landscape has changed significantly and presented us with unprecedented challenges,” said Robert K. Steel, CEO and President of Wachovia, in the news release. “Today’s announcement is the best alternative for the company, enabling a resolution on the Golden West portfolio.”
The transaction is expected to close before year end. It has been approved by directors of both companies and is subject to Wachovia shareholder approval and the appropriate regulatory approvals.