Leo_SC

The Lowdown on Citi / Wachovia

...and by the way: I much rather would like to have Wells Fargo stocks than Citi stocks. Never liked Citigroup and never do. Anyway--we'll see how it will end up.

The Lowdown on Citi / Wachovia

Good news @ 8:04 Friday morning (BOA info):
CITI DEAL IS OFF!! Wells fargo intends to buy wachovia at a value of about $7 per share. Stock is pre-trading @ $6.70.
Now how about that! :-) Finally we come closer to the "real" value of WB stocks...Thus folks--hold on to your WB stocks...

The Lowdown on Citi / Wachovia

@ t_ngern
Wachovia is not and never was bankrupt. If the deal goes through they still have Wachovia Securities, Evergreen Investments and Wachovia Insurance Services; all much more worth than just $1 per share. If the deal does not go through I am convinced they can get out of this situation without a bailout.
So where was the difference in BOA taking over Merrill Lynch, which otherwise would have likely gone bankrupt, from Citi to take over Wachovia? The only difference I see is that BOA paid a fair price with Merrill Lynch stocks still trading fairly well after the anouncement. Why did Citi get away with such a cheap price for Wachovia stocks causing the huge drop in WB value? Guess time will tell...

The Lowdown on Citi / Wachovia

@ jode: I would and in fact I still own my shares I bought a while ago. I have no intention to sell at this point. It may makes sense to rather buy some to support the current stock price, no?
It seems there is still some confusion about whether common WB stocks are going to be Citi stocks or not. According to [Oct 01 12:27 PM] syndicat WB stocks will still be WB stocks. Does investor relation @ Wachovia tell something different? Also: Why in the world should shareholder accept a trade of WB stocks @ $1 when the stock is currently trading much higher? Does not make sense to me. Would you sell your car for $1000 when you get $3500 at the current market?

The Lowdown on Citi / Wachovia

Please excuse my ignorance: If Citigroup takes over parts of Wachovia (depending on shareholders) would the common WB stocks "forced" to be exchanged at only $1 at the time of deal closing, regardless what the current/future trade value for WB stocks is? Afterwards WB is still a public trading company...with a much better position now (thus stock should further improve?)
I have no problem waiting a couple of years for the stock to rebounce but I have a problem exchanging my stocks for $1....Opinions?

The Lowdown on Citi / Wachovia

Well, I read some optimism here about Wachovia stock. Stockholders lost quite a bit due to today's stock decline so would it be wise (or insane?) to buy more stocks at the current low price in order to "recover" quicker?