BofA, Wells Fargo Wrap Up Big Acquisitions

By Harry R. Weber

ATLANTA -- Two mega acquisitions in the banking sector have been completed following the biggest financial crisis to hit the United States since the 1930s, capping a year in which Wall Street stocks were hammered, home foreclosure rates soared and job losses mounted.

Bank of America Corp.(BAC Quote) said Thursday it has completed its $19.4 billion all-stock purchase of Merrill Lynch & Co.(MER Quote), while Wells Fargo & Co.(WFC Quote) said it has completed its $12.7 billion all-stock purchase of Wachovia Corp.(WB Quote).

Merrill Lynch's sale to Charlotte, N.C.-based Bank of America, announced Sept. 15, creates the nation's largest financial services company. San Francisco-based Wells Fargo's purchase of Wachovia, a deal that was announced Oct. 3, creates a coast-to-coast powerhouse with community banks in 39 states and the District of Columbia.

Shareholders of Merrill Lynch received 0.8595 shares of Bank of America common stock for each common share of Merrill Lynch they owned. That valued Merrill Lynch at $19.4 billion based on 1.6 billion Merrill common shares outstanding as of the last filing date and Wednesday's Bank of America closing stock price of $14.08.

Wachovia shareholders received 0.1991 shares of Wells Fargo common stock in exchange for each share of Wachovia common stock they owned. That valued Wachovia at $12.7 billion based on 2.16 billion Wachovia common shares outstanding as of the last filing date and Wednesday's Wells Fargo closing stock price of $29.48.

Besides acquisitions, the turmoil in the banking sector has brought announcements of big job cuts and loans to several banks from the government's $700 billion rescue fund.