Wachovia Re-Opens, Some Value Remains (WB, C)

Wachovia Corporation (NYSE: WB) has just resumed trading after its FDIC-led Citigroup Inc. (NYSE: C) "take-under" came in.  By now you’ve already heard enough about the merger news and how ugly this was going to be for shareholders.  In less than ten minutes of re-opening, Wachovia shares have traded more than 120 million shares of stock.  The last print we saw was $1.94, down over 80% from Friday’s $10.00 close.  The open print is being listed as $1.26 and so far the lowest print we saw was $0.98.    

Interestingly enough, there is actually some value for common shareholders here.  The remaining Wachovia is being given a payment by Citigroup. The remaining entity will also still hold A.G. Edwards and Evergreen Asset Management.  What the actual value of those combined will be, well that is where the debate is.

Jon C. Ogg
September 29, 2008