Wells Fargo & Co. has made a deal to acquire the failing bank of Wachovia. Originally, Citigroup was planning to buy the bank, but Wells Fargo provided a better offer. Wells Fargo will pay $15.1 billion for Wachovia's stock.
The deal is still under review by the Federal Reserve, as they were previously examining the Citigroup offer. Wachovia shareholders will receive about $7 per share, which is about 80% more than the stock's Thursday closing price of $3.91.
This acquisition is an attempt to prevent a crisis for Wachovia's customers without government interference.