New York- Americans are witnessing history before our eyes as we watch the restructuring of the entire financial industry. Mergers and Acquisitions (M&A) seem to be one of the major themes these past few weeks. Integrity Research currently tracks over a dozen independent research firms that follow Merger/Risk Arbitrage as their core business model. The most recent news involving M&A has Wells Fargo, Citi, and Wachovia as players. Wells Fargo announced early today that it will merge with Wachovia for a $15.1 billion dollar deal. This will create the largest retail bank in the nation and push aside Citigroup Inc.’s plan to buy Wachovia’s banking operations for $2.1 billion.”We at Wachovia have great admiration and respect for the people and businesses at Wells Fargo and we are extremely pleased to join forces with this outstanding company,”said Robert K. Steel, President and CEO of Wachovia Corp. “Today’s announcement creates one of the strongest financial firms in the world and is great for all Wachovia constituencies: our shareholders, customers, colleagues and communities.”
A little more than an hour after the new deal was reported; Citi released an angry statement demanding Wachovia and Wells Fargo terminate their merger agreement stating the deal is “in clear breach of an Exclusivity Agreement between Citi and Wachovia. In addition, Wells Fargo’s conduct constitutes tortious interference with the Exclusivity Agreement.”
DealReporter and DealAnalytics, two M&A firms tracked by Integrity, are among the many that are sure to have something to say on this. DealReporter offers proprietary intelligence and analysis to clients including hedge funds, prop desks, and institutional fund managers. Along with giving insight, they track the likelihood of a completion of a deal using as a focus issues including anti-trust regulation and regulatory implications and management and shareholder sentiment.
DealAnalytics provides both specific trading strategies to help investors make timely investments as well as portfolio recommendations to assist in risk assessment and portfolio weightings. The firm’s database tracks pending transactions in North America. Similar to a newswire service, DealAnalytics’ insight is delivered in real-time. Investors are likely logged on now, as Citi’s stock has fallen 11%.