Here is the deal. maybe someone can read it to you so you understand.
1.Here is a copy of recent news regarding shareholder vote:
"CHARLOTTE, N.C. (AP) -- Wachovia Corp. said it won't seek shareholder permission to issue preferred shares as part of its acquisition by Wells Fargo & Co. in a move approved by the New York Stock Exchange.
The bank, which is being acquired by Wells Fargo for about $11.7 billion, said in a statement Friday that waiting to secure shareholder approval for the issuance would "seriously jeopardize the financial viability of Wachovia."
Shareholders will still vote on the acquisition deal, which much also receive regulatory approval."
2.I am not worry about Moody. It only puts WFC on a review. By the time they know that Buffett invested heavily in WFC and received a call from him, they will leave it unchanged.
3.I just read the article "Wells Fargo wins battle to claim Wachovia" in the New York times' Business section today. It said "Lawyers said that the $60 billion claim by Citi-group will not be easy to make. Wachovia and its board have strong defenses of their actions. Corporations have obligations to protect the interests of investors, and for Wachovia to ignore a higher bid for the company would arguably have been a breach of thoses duties.
Then there is the issue of the bailout legislation signed into law last week by President Bush. A provision in the legislation appears to invalidate bank acquisitions "in connection with any transaction" in which FDIC uses its authority....Wachovia is likely to argue that the bailout provision invalidated its agreement with Citigroup".
Moreover, the deal with Citi actually saved Citi who will be next in the domino fallout.
4. Also from the same article, it said "Richard M. Kovacevich, the chairman of Wells Fargo, said the merger was "simply an incredible fit that will carry on Wachovia's proud tradition of being one of the very best financial institution in the world".
Bottom line, WFC will never back out the deal no matter what happens in the next three weeks.
