Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 6:03:24 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

$6B From Outside Investors Will Shore Up Wachovia

Posted Apr 13, 08 10:48 PM CDT in Business 

(Newser) – Ailing bank Wachovia will get a $6 billion-$7 billion shot in the arm from outside investors, the Wall Street Journal reports. Specifics of the capital infusion, designed to help the company recover from the credit crisis, haven’t been finalized. Details may be revealed when the company reports first-quarter earnings Monday; it moved the announcement up from Friday without explanation.

In exchange, the investor group could receive company shares for at least $23 each, a 15% discount on Wachovia’s Friday share price. A deal would bolster the company’s credibility on Wall Street but could anger shareholders not party to the agreement. Wachovia raised $8.3 billion from a similar capital infusion earlier this year.

Source Wall Street Journal

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Battered Wachovia Shops for Buyers

    Sep 27, 08 11:31 AM CDT
    Battered Wachovia Shops for Buyers Wachovia is in a new round of talks with potential buyers, reports the Wall Street Journal, courting Citigroup, Wells Fargo, and Spain’s Banco Santander to help guard it from the financial market crisis. While the bank says it’s not in immediate danger, shares at Wachovia, which holds a $120 billion mortgage portfolio, dropped 27% yesterday on the news of Washington Mutual’s failure.
    More »

  • Morgan Stanley, WaMu Edge Closer to Deals

    Sep 19, 08 3:07 AM CDT
    Morgan Stanley, WaMu Edge Closer to Deals Two of the biggest financial institutions in the midst of the market turmoil are moving closer to hammering out deals. Washington Mutual's suitors are believed to include Citibank, JP Morgan and Bank of America, insiders tell Bloomberg, while Morgan Stanley and Wachovia have stepped up merger talks, reports the New York Times. Morgan is also in separate talks with the China Investment Corporation. More »

  • Could-Have-Been-Worse News Now Cheers Wall Street

    Jul 23, 08 5:56 AM CDT
    Could-Have-Been-Worse News Now Cheers Wall Street Yesterday's announcements of multibillion-dollar losses at Wachovia and Washington Mutual were only the latest poundings since the credit crisis took hold a year ago. Yet Wall Street, its expectations at rock bottom, cheered the reports because they could have been worse. Shares in WaMu, which posted a $3.3 billion quarterly fall, soared 6.2%. "We are redefining bad," one risk analyst told the New York Times. More »

  • Financials Key Downward Spiral

    Jun 2, 08 3:38 PM CDT
    Financials Key Downward Spiral Financials keyed major market losses as high-level personnel shuffles at Wachovia and Washington Mutual, plus a report by Standard and Poor that downgraded the ratings of several prominent banks, disconcerted investors, MarketWatch notes. The Dow lost 134.50 to settle at 12,503.82, and the Nasdaq lost 31.13, closing at 2,491.53. The S&P 500 lost 14.71, ending the day at 1,385.67. More »

Wachovia acquired mortgage-lender Golden West near the height of the housing boom.   (AP Photo/Chuck Burton, file)
Wachovia CEO Ken Thompson conceded the bank's acquisition of Golden West was an error.   (AP Photo/Chuck Burton)
Wachovia will receive between $6-7 billion from outside investors.   (AP Photo/Chuck Burton, file)
Wachovia's net income last year slid to $6.3 billion from $7.7 billion in 2006.   (AP Photo/Chuck Burton)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 2)

Tags

credit crisis • Wall Street • Wachovia • Washington Mutual • private equity firms • sovereign wealth funds • mortgage loans



Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »