Wachovia Closes Golden West Purchase

It’s official:

Banking and financial services company Wachovia Corp. said Monday it closed its acquisition of Golden West Financial Corp. and named three new board members, two of them Golden West officials.
Oakland, Calif.-based Golden West, which operates as World Savings Bank, is one of the largest thrifts in the U.S. Its shareholders will receive 1.051 shares of Wachovia stock and $18.65 cash for each Golden West share they own.
Of the new board members, Jerry Gitt, 63, and Maryellen Herringer, 62, had been directors of Golden West. Timothy Proctor, 56, is the general counsel of Diageo PLC, a London-based beverage company.
Herbert and Marion Sandler, the husband-and-wife team who ran Golden West for much of their 45-year marriage, will continue to advise the new management.

Wachovia (WB) will now appear on the Buy List in place of Golden West Financial. For Buy List tracking purposes, we have to make some changes (someone please double-check my math!).
At the beginning of the year, we added 757.5758 shares of Golden West at $66 each. With the merger, we now have 796.2122 shares of WB, plus $14,128.79 in cash. Going by Friday’s closing price of $55.80 for WB, that cash is being exchanged for another 253.2041 shares. So now we have a total position of 1049.4163 shares of WB with a cost basis of $47.64554.

Posted by on October 2nd, 2006 at 9:38 am


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