Tags: wachovia

Wachovia Settles Lawsuit Over Proposed Merger

Wednesday, 17 Dec 2008 03:43 PM

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NEW YORK - Wachovia Corp. said Wednesday it settled a lawsuit that sought to block its sale to Wells Fargo & Co.

The suit was filed in North Carolina on behalf of Wachovia shareholders and named Wachovia, its board of directors and Wells Fargo as defendants. A Wachovia representative wasn't immediately available for comment.

Carl Stine, a partner with Wolf Popper, the New York law firm that filed the suit, declined to comment on the settlement.

In the past, Stine has said one reason for the suit was a move by Wachovia to allot Wells Fargo 39.9 percent of preferred stock, which meant only about 11 percent of shareholders needed to approve the buyout rather than 51 percent.

Stine has also said the deal is too low considering the bank bailout plan recently passed by Congress.

The acquisition, valued at $12.7 billion in stock, is expected to close by Dec. 31.

In late afternoon trading, shares of Wells Fargo rose 28 cents to $30.06. Wachovia stock rose 3 cents to $5.93.

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