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 SAN FRANCISCO (AP) - Wachovia Corp., the nation's fourth largest bank, is muscling into the West with a $24.2 billion deal to buy Golden West Financial Corp., a mom-and-pop shop that blossomed into a prized savings and loan.
The stock-and-cash acquisition initially valued Golden West at $25.5 billion, or $81.07 per share — 15 percent above the company's last price on the New York Stock Exchange before the takeover was announced late Sunday.
But the proposed sale price dropped as Wachovia's stock declined amid investor concerns about how the deal will affect the bank's future earnings. Wachovia shares fell $3.97, or 6.7 percent, to close at $55.42 on the New York Stock Exchange, where Golden West shares rose $4.39, or 6.2 percent, to finish at $74.90.
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