Wells Fargo Plans $10 Billion Offering
Wells Fargo
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said late Wednesday that it plans to issue a $10 billion worth of common stock, half the amount it said it would do a month ago.
Wells said in early October, when it agreed to acquire
Wachovia
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, that it would issue up to $20 billion in common stock. But a week later, the Treasury Department took a $25 billion preferred equity stake in the bank as part of a $250 billion program to shore up confidence in the reeling banking system. The capital, invested through the Troubled Asset Relief Program, or TARP, counts towards banks' Tier-1 capital.
JPMorgan Securities, a unit of
JPMorgan Chase
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is acting as the global coordinator for the offering.
Goldman Sachs
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,
Morgan Stanley
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,
UBS
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and Wachovia Securities are joint bookrunners.
Wells Fargo shares fell 9% on Wednesday but regained some ground after the market closed. The stock was most recently down 3.5%.
