Transcripts

Wachovia Goes West

JEFF YASTINE: A big merger today in the banking industry. Wachovia is buying California`s Golden West Financial. The price tag: $25.5 billion in cash and stock or just over $81 for each Golden West share. That represents a 15 percent premium over Friday`s closing price. Wachovia is the fourth largest bank in the U.S. with operations primarily on the east coast. Combining with Golden West boosts its branch count to 3,400, a big step toward its goal of becoming a national brand.

MARK HEBEKA, BANKING ANALYST, STANDARD & POOR`S: Long term for Wachovia I see it as a positive. I think while the price may have been a bit high, they are going to establish a west coast presence. They are going to become a national player and they can grow from there.

YASTINE: Still, not everyone is as enthusiastic about the deal. Analysts at Prudential and Friedman, Billings, Ramsey downgraded Wachovia stock today. A community group has also come out against the merger, claiming Wachovia`s lending practices make it tougher for African Americans to get loans.