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Text size [+][-]  Saturday March 20 2010GLOBAL EDITION

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14 Apr 2008 22:12

WaMu vs. Wachovia

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Wachovia priced $3.5bn, or 145.8m shares of common stock, at $24 a share, a 14% discount to the previous day close.

It also sold $3.5bn of non-cumulative perpetual convertible class A preferred stock which will be convertible at any time into 32m shares of Wachovia’s common stock, plus cash in lieu of fractional shares, equivalent to an initial conversion price of approximately $31.20 per share, a 12% premium to the previous day close.

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Both banks have pulled in $7bn in the past week. But Wachovia got better terms. That may be because it looks in better health. But even so, Wachovia’s public offering was better for shareholders than WaMu’s sweetheart deal with a handful of investors.

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More stories by:  Lauren Silva Laughlin






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