Wachovia to buy A.G. Edwards for $6.8B

[June 01, 2007]  NEW YORK (AP) --  Wachovia Corp. said Thursday it would acquire A.G. Edwards Inc. for $6.8 billion in cash and stock in a deal to form one of the largest retail stock brokerages in the United States.

Wachovia said A.G. Edwards shareholders would get 0.9844 Wachovia shares and $35.80 in cash for each A.G. Edwards share held. That offer values A.G. Edwards at $89.50 per share based on Wednesday's closing prices, a 16 percent premium.

The combined entity will have more than 3,300 brokerage locations nationwide, more than $1.1 trillion in client assets and nearly 15,000 financial advisers.

The deal is expected to close in the fourth quarter of 2007, with full integration by early 2009.

Wachovia said Daniel J. Ludeman, currently president and chief executive of its Wachovia Securities unit, will keep those roles at the combined brokerage unit. A.G. Edwards Chairman and CEO Robert Bagby will be chairman of the brokerage.

[Text copied from file received from AP Digital]