Wachovia

this question is for those economic people.....what happens to Wachovia shareholders? Say if I owned a thousand shares in wachovia, what does citigroup buying the banking operations do to my stock?

 

They are still a publicly traded company with their Securities and Evergreen groups. I'm not sure the worth of those two and possibly other assets they own but Securities is profitable.

Trading is halted at the moment...probably so people can digest the news.

 

wachovia stock will be converted to citi stock

 

Right now, your stock is worth 94 cents.

As details of its takeover unfolded, Wachovia shares plunged 91 percent to 94 cents. The stock had closed Friday at $10, down 74 percent for the year.

As with the other takeovers, the stock is pretty much worthless.

 

so what you are saying is that wachovia stockholders just lose their stock / money?

 

that was my initial thought.....just didn't know if it was in fact the truth or not.

 

To put it simply, yes. Figure the stock is worth a bit under a $1 a share and that's what the shareholders will get for it in trade for Citi stock.

 

ok, what i'm saying is if they chose to hold on to their stock and not sale, does that stock in fact become citi stock?, just a ton less shares?

 

correct

 

I wonder what portion of equity value will be placed on the banking operations purchased by citi, and what portion of equity value will be placed on securities and evergreen?

I guess I'm not alone in wondering that, and since I have no dog in the race, probably the least concerned.