Wachovia acquires A.G. Edwards to form new brokerage firm with assets in excess of $1 trillion

By Lisa Kerner

Charlotte, N.C., Oct. 1 - Wachovia Corp. completed its acquisition of A.G. Edwards, Inc. and will combine A.G. Edwards with Wachovia Securities LLC to create a brokerage firm with $1.1 trillion in client assets and some 15,000 financial advisers.

In addition, A.G. Edwards' investment banking business will be combined with Wachovia Capital Markets LLC.

The Wachovia Securities trade name will be introduced across the combined firm in 2008, Wachovia announced on Monday.

A.G. Edwards shareholders will receive 0.9844 of a share of Wachovia common stock and $35.80 in cash, or a total value of $89.50, for each share of A.G. Edwards common stock they hold.

"The combination of A.G. Edwards and Wachovia Securities creates a special new firm that combines the scale and resources required for long-term leadership in our industry with a culture and values based on service and deep respect for the relationship between financial advisers and their clients," Danny Ludeman, president and chief executive officer of Wachovia Securities, said in a company news release.

The companies announced their merger plans in May and the merger integration process is slated for completion in early 2009. A.G. Edwards stockholders approved the acquisition on Friday.

A.G. Edwards is a financial services holding company located in St. Louis. Wachovia is a diversified financial services company based in Charlotte, N.C.

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