Wells Fargo's buyout of Wachovia approved by Federal Reserve

By Lisa Kerner

Charlotte, N.C., Oct. 13 - The Federal Reserve Board approved Wells Fargo & Co.'s application to acquire Wachovia Corp. and its subsidiary banks as well as its nonbanking subsidiaries.

According to Wells Fargo, the merger is on track to close by the end of this year.

It was previously reported that Wachovia intends to forgo shareholder approval for the merger agreement and share exchange agreement with Wells Fargo.

Wachovia agreed to be acquired by San Francisco-based Wells Fargo in a stock-for-stock deal that doesn't require financial assistance from the Federal Deposit Insurance Corp. or other government agency.

Both financial services companies' boards of directors unanimously approved the deal, which is valued at $7.00 per share, or approximately $15.1 billion, a prior news release said.

The merger agreement gives Wachovia shareholders 0.1991 shares of Wells Fargo common stock in exchange for each share of Wachovia common stock, a Wachovia news release said.

Wells Fargo said the combined company's East Coast retail and commercial and corporate banking business will be based in Charlotte, N.C., where Wachovia is currently based. Wachovia Securities will continue to be based in St. Louis.

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