Wells Fargo plans to sell at least $10 billion of stock to help fund its purchase of Wachovia Corp, reports Reuters.
San Francisco-based Wells Fargo previously said it planned to raise up to $20 billion to fund the all-stock purchase of Wachovia, which it valued at $15.1 billion upon announcing it last month. That value had fallen to about $13.6 billion by Wednesday’s close because Wells Fargo shares have declined.
Wells Fargo expects to sell the new stock after U.S. markets close on Thursday. The new capital is on top of the $25 billion. Wells Fargo is receiving by selling preferred shares to the government, as part of US Treasury Secretary Henry Paulson’s $700 billion industrywide bailout.
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