WASHINGTON – A group of banking from the United States (U.S.) Wells Fargo to buy shares of British insurance company, Prudential. Purchase of shares was conducted by a joint venture with Wells Fargo brokerage Advisors for $ 4, $ 5 billion in cash at the end of this year.
Wells Fargo also announced that on Tuesday, December 15 local time, where day after his party agreed to pay $ 25 billion into the U.S. Treasury as payment for the bailout received at the time of financial crisis.
“Wells Fargo will acquire Prudential shares on or before December 31, 2009,” he disclosed the two groups in their joint statement, as quoted by AFP on Wednesday (16/12/2009).
Previously, Prudential last year announced plans to sell their shares through a broker.
“The purchase price for the shares of Prudential based on the agreement between the parties and according to the assessment of the Wells Fargo Advisor (later known as Wachovia Securities) on January 1, 2008, before any contribution from the retail securities business of AG Edwards & Sons,” the statement added.
Prudential Chairman and CEO John Strangfeld said the company was happy to have reached an agreement in cash with the Wells Fargo. “This was done to solve our interest in joint venture with Wachovia Securities,” said Strangfeld.
He added that the completion of this acquisition will substantially increase the capital position of Prudential, in addition to financial flexibility going forward as well.
