Banks
Report: Wachovia to Get Big Cash Infusion
TSC Staff
04/13/08 - 08:35 PM EDT
Wachovia(WB Quote - Cramer on WB - Stock Picks) is working on a deal to receive billions of dollas of fresh capital from outside investors, according to a report Sunday in The Wall Street Journal.
The bank could announce the capital infusion as early as Monday, the report said, citing people familiar with the matter.
Final terms were still being hashed out Sunday evening, but it was likely that the investor group would contribute $6 billion to $7 billion and receive Wachovia shares priced at $23 to $24 each, the report said. The bank's stock closed Friday at $27.81.
The deal has a similar structure to one announced last week by Washington Mutual(WM Quote - Cramer on WM - Stock Picks), the report said.
One potential investor in Wachovia is private-equity shop Warburg Pincus, the report added. A spokeswoman for Warburg declined to comment, and Wachovia officials couldn't be reached Sunday, according to the report.