Wells Fargo To Buy 401(k) Business From Comerica

CHARLOTTE, N.C. (AP) — Wells Fargo & Co. said Monday its subsidiary, Wachovia Bank, will acquire the defined contribution plan recordkeeping business of Texas-based Comerica Bank, a subsidiary of Comerica Inc.

The cost of the acquisition was not released. The deal is expected to close this quarter.

The business provides recordkeeping services to 250 retirement plans with nearly 100,000 participants and manages about $3.4 billion in assets.

Wells Fargo shares rose $4.64, or 23.7 percent, to close at $24.25. Comerica gained $3.39, or 16.2 percent, to finish at $24.35.

Since the fourth quarter of 2004, WySTAR Global Retirement Solutions, a division of Wachovia Bank, has provided administration and operation services, as well as call center services to participants in Comerica Bank-sponsored plans. The acquisition will not result in a system or a process change for companies whose plans were administered by Comerica Bank.

Wells Fargo's institutional retirement group serves about 3.7 million employees and pensioners, over 10,000 companies and manages over $176 billion in assets.