U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-20-2008, 11:12 AM
 
338 posts, read 772,573 times
Reputation: 130

Advertisements

According to the following story in the June 20, 2008 edition of the Charlotte Observer, Wachovia might be taken over by a larger bank. Also, notwithstanding comments by B of A's CEO, there has been speculation that B of A might move its HQ to NY in order to position itself as a more international bank (since NY and London are the only global banking centers).


I don't think that this would hurt Charlotte much (other than wounding its pride) as most jobs probably would stay here other than the small fraction of the very high leadership positions.


Wachovia stock jumps
on analyst's takeover talk

Bank called ‘uniquely attractive as a merger partner' because share price has dropped to half of value.

Rick Rothacker

rrothacker@charlotteobserver.com

Related Content
JOB CUTS HIT INVESTMENT BANK Wachovia Corp. on Thursday broke the news to more employees losing their jobs in previously announced layoffs within the corporate and investment bank.
The Charlotte bank in April said it was eliminating 500 positions in the unit, or about 8 percent of its staff, by the end of this month. Like its peers, Wachovia's corporate and investment bank, based in Charlotte, has seen business dry up in the credit crunch.
Thursday's move affected 90 employees, including 60 in Charlotte, within the investment banking and capital markets area, a source said. That group is led by co-heads Jonathan Weiss and Rob Engel after a recent reorganization.
The corporate and investment bank has previously laid off workers in real estate and fixed-income areas. A Wachovia spokeswoman declined comment.


Wachovia Corp. shares jumped more than 5 percent Thursday after an analyst suggested the company was an alluring takeover target.
Deutsche Bank analyst Mike Mayo said the Charlotte bank is “uniquely attractive as a merger partner” because its stock price has fallen to less than half of the company's estimated franchise value, a rare occurrence. He also suggested the company could land a permanent chief executive “sooner rather than later” in a bid to improve credibility with investors.
The bank's shares climbed 89 cents to $17.77; they're down more than 25 percent since Wachovia's board ousted chief executive Ken Thompson on June 1. Merger speculation can help stocks because investors expect the buyer to pay a premium above the current share price.
Interim CEO Lanty Smith has launched a search for a new leader and has stressed the company's desire to stay independent. A source said senior management and board members have been meeting this week to talk strategy.
Also, Wachovia has hired investment bank Goldman Sachs Group Inc. to advise on strategy and in the CEO hunt, the Wall Street Journal reported Thursday. A source told the Observer that Goldman had been tapped to analyze the bank's balance sheet. The bank also has selected recruiting firm Spencer Stuart to help with the CEO search.
A Wachovia spokeswoman declined comment.
In his report, Mayo reiterated his “buy” rating on Wachovia's stock, bucking most of the analyst community. However, he lowered his 2008 earnings estimate to $1.15 per share from $2 per share, citing rising loan losses. Over time, he said losses on the bank's $120 billion Pick-A-Payment mortgage portfolio, acquired in 2006 from Golden West Financial Corp., could rise to 15 percent, or $19 billion.
In the first quarter, Wachovia set aside $1.3 billion to cover losses in Pick-A-Payment loans, a big part of its $2.8 billion provision for bad loans. For the period, the bank reported an overall loss of $707 million, or 36 cents per share. It discloses second-quarter earnings next month.
Mayo touted former Bank of America Corp. chief financial officer Al de Molina as his choice for the CEO post. Like other analysts, he floated New York-based JPMorgan Chase & Co. as a possible Wachovia buyer, citing its interest in expanding into the Southeast.
Also on Thursday, analyst Kevin Fitzsimmons of Sandler O'Neill + Partners slashed his 2008 Wachovia earnings estimate to 56 cents per share from $1.34. He has a “hold” rating on the stock.
In his report, Fitzsimmons said there is a “good chance” Wachovia will cut its dividend and raise more capital over the next several quarters.
Mayo said he believes the bank will not raise capital in the near-term.
“We think the stock will likely continue to be weighed down by a high degree of uncertainty,” Fitzsimmons wrote. “And while we still consider a merger involving (Wachovia) as unlikely, we can't rule it out altogether.”
Reply With Quote Quick reply to this message

 
Old 06-20-2008, 11:58 AM
 
Location: Huntersville
1,521 posts, read 4,402,750 times
Reputation: 298
I guess it possible. IMO I do not think it will happen.
Reply With Quote Quick reply to this message
 
Old 06-20-2008, 12:11 PM
 
Location: Fort Mill, SC (Charlotte 'burb)
4,730 posts, read 17,483,756 times
Reputation: 1008
Me either...wages and cost of living are much lower in Charlotte than in NYC.
Reply With Quote Quick reply to this message
 
Old 06-20-2008, 12:15 PM
 
Location: Uptown CLT (4th Ward)
2,560 posts, read 7,569,520 times
Reputation: 422
I don't think it would ever happen either. Charlotte is the 2nd largest banking & financial center in the US...only behind New York.

Anything is possible of course.
Reply With Quote Quick reply to this message
 
Old 06-20-2008, 12:49 PM
 
Location: Huntersville
1,521 posts, read 4,402,750 times
Reputation: 298
Oh and stop reading the disturber. Its not worth the .50c
Reply With Quote Quick reply to this message
 
Old 06-20-2008, 12:50 PM
 
Location: Uptown CLT (4th Ward)
2,560 posts, read 7,569,520 times
Reputation: 422
Quote:
Originally Posted by QC Misfit View Post
Oh and stop reading the disturber. Its not worth the .50c
I like that...I have never heard it called that....
Reply With Quote Quick reply to this message
 
Old 06-20-2008, 01:40 PM
 
620 posts, read 1,886,843 times
Reputation: 254
BOFA has too much invested in Charlotte to just pick up and leave. They are even building a new office tower and Ritz-Carlton Hotel. Wachovia, on the other hand, might get taken over but I doubt they would let that happen. They are also building a new 48 story office tower here that is already fully leased. It just doesn't make economic sense to just pick up and leave and relocate to a place that is a lot more expensive and I doubt they could get most of their employees to relocate to somewhere like NYC. BOFA isn't going anywhere, and if Wachovia merges or gets bought out by whoever, then we might loose the headquarters title but they will still have a very large presence here.
Reply With Quote Quick reply to this message
 
Old 06-20-2008, 02:07 PM
 
51 posts, read 124,754 times
Reputation: 27
Quote:
Originally Posted by Londonlawyer View Post
[b][font=Arial]
I don't think that this would hurt Charlotte much (other than wounding its pride) as most jobs probably would stay here other than the small fraction of the very high leadership positions.
Yes, that's precisely the barrister's sentiment.
Reply With Quote Quick reply to this message
 
Old 06-20-2008, 02:29 PM
 
1,253 posts, read 4,054,538 times
Reputation: 619
As the article stated, they would probably keep much of their operations in Charlotte so it does not matter how much they have invested here. They would relocate more for identity reasons. All the "big boys" are in NY so that means a lot to some people (not me LOL)
Reply With Quote Quick reply to this message
 
Old 06-20-2008, 02:33 PM
 
Location: Ballantyne - Endhaven Communities
281 posts, read 845,146 times
Reputation: 65
I can definitely see them "moving their headquarters" to NY. It wouldn't take a whole lot to do this, and it would give them the reputation or status that they want to help them compete internationally. There would need to be some upfits to bring the offices in NY up to par with the executive floors in the BOA Corporate Center downtown, but other than that it's not that hard to do.

I don't think it would hurt Charlotte too much, but it would be a loss of pride.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 04:35 AM.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top