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Bob Steele, WB CEO, has a fudiciary responsibility to take the best deal for his shareholders. That is a CEO's number one responsibility - its shareholders.
If the Fed demands that WB take the Citi deal it will still require a vote by shareholders and I strongly suspect that WB's BOD would suggest voting against the Citi deal. Nevertheless, I strongly suspect that WB shareholders would vote against the Citi deal regardless of what the WB BOD suggests.
Citi can sue, but I really think the pressure on the Fed would be overwhelmingly against the Fed requiring WB's shareholders taking a worse deal. Lastly, with the WFC deal there is no Fed involvement, which is something the Fed should want.
The whole deal with Citi was forced and went down in a matter of mere hours. The Fed was just wanting take care of things at the speed of light, not caring about the true outcome and what is best for everyone.
All great points. The Fed, nor a court, can "force" Wachovia to sell to Citi. Only the shareholders (owners) decide who to sell too. Plus, history shows these lawsuits never have any traction. And even if Citi makes a higher bid, its up to the shareholders to decide who they feel has the best long term fit. If I recall, Suntrust offered a higher bid for Wachvia than First Union, but First Union won out because the shareholders felt that bank would be a better union. It appears most Wachovia shareholders are mostly against joining Citi under any circumstances.
But Charlotte is #2...You start adding the cost of real estate in those areas and it makes no sense to move them to NY. You would also have t opay the people more as well. You only have so much money coming in, but if you are paying more out in one locale than the other, then it doesn't make much sense. Will they have a presence in NY? Maybe, BOA has one there, but they maintain their headquarters in Charlotte.
I was just being sarcastic from a few posts that around yesterday.
I work for wachovia, it's friday, and dagnamit I need a drink.
thank you and have a nice day.
Best post yet today by far!! Cheers!!! Have a great weekend!!! At the end that's all we can do. Keep doing our jobs, whichever they are and plug away together as a community. Good luck to all Wachovia employees and our city!!!
I was just being sarcastic from a few posts that around yesterday.
And I think I started it, so sorry for confusing things, Hee Hee. Well, not really that sorry.
It's Friday, folks! Let's all look on the bright side and assume that WF is gonna be able to work out the Wachovia deal. Remember - we are all connected on a nano level and so even our thoughts become part of the universe around us. A whole city of stressed out people is NOT going to bring us the positive energy that will help us get this deal done!
Okay, okay. I know. Too much metaphysics for 1:45 pm, LOL. But hey . . . it's Friday!!! Let's all just be happy for what may turn out to be Charlotte's Knight in Shining Armor - even if his Armor may be a bit dented and a battle may be on the horizon.
How do you know there's less overlap? How do you know the infrastructure will remain intact in Charlotte? I'm genuinely curious; I'm not trying to be argumentative, and I hope this doesn't come across like that.
I wish I could feel more positive about this whole thing.
Knowing a bit about both companies it is a better fit, they both were strong in retail and this makes them #1 in retail, you won't see much drop there, especially since both were focused on opposite sides of the country. Wachovia has a Huge Credit presence Here, Wells needs those people because they weren't as strong on that end. Citi outsourced it's credit card ops. Wells has some top programs that will remain intact, but knowing that Wells was not the size of Citi, not even close, you will have a top 4 company now instead of a #1. There will be overlap, but I don't think you will see the breakup like under citi. Wells is more of a merger than a buy my favorite pieces.
Note that citi's offer wasn't for all of Wachovia so you can't really compare the numbers. Citi will want some money, but I don't see this deal falling through. If and when this happens you will have 4 very big players, BofA Citi, JPMorgan and Wells/Wachovia. I think you will will see PNC get bought next.
Location: Lots of sun and palm trees with occasional hurricane :)
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I read the NC forums every so often as I'm potentially interested in spending some or all of my old age in, probably, Charlotte.
I do hope everything works out for the better for Charlotteans (is that the right word?). I happen to have been in Charlotte last Friday for the very first time in my life and I liked it so much, even if I was only there one day, and a very ugly, rainy day at that.
I think this is great for the shareholders but I would wait a while to figure out how it plays out for Charlotte. I would look at the Nationsbank/BofA deal and see how SF faired in that deal. I would assume once the dust settles it will look similar to BofA with less of a NYC presense. I do have more respect for Wells as a bank over Citi. Citi stunk at retail banking and Wells already has a really good platform.
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
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Quote:
Originally Posted by jennej
How do you know there's less overlap? How do you know the infrastructure will remain intact in Charlotte? I'm genuinely curious; I'm not trying to be argumentative, and I hope this doesn't come across like that.
I wish I could feel more positive about this whole thing.
You can look at the Wells business model and the Wachovia business model that can tell you that they are complimentary and will supplement each other. Plus the reports are that they will keep the Charlotte office intact.
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