US bank Wells Fargo said Monday it had raised 12.6 billion dollars in a stock offering in preparation for its acquisition of rival bank Wachovia.
The bank offered 407.5 million shares and sold an additional 61 million shares due to demand.Wells Fargo, which needs financing to buy Wachovia, fixed the share offering at 27 dollars in early November, a modest discount to its share price at the time of 28.77 dollars.
"The enthusiastic response to this offering in a very difficult market demonstrates broad investor confidence in Wells Fargo's long-term growth potential and our time-tested vision and diversified business model," said Wells Fargo's chief financial officer Howard Atkins.
Wells Fargo also has received 25 billion dollars from the US Treasury as part of the Treasury's 700 billion dollar bailout of the troubled financial sector.
Showing posts with label Wachovia Bank. Show all posts
Showing posts with label Wachovia Bank. Show all posts
Tuesday, November 11, 2008
Wednesday, October 1, 2008
US institutions plan to sell off assets in India
Large institutions such as AIG, Morgan Stanley, Wachovia and others are planning to liquidate some of the Indian assets in which they had invested their proprietary capital.Investment banking sources and PE funds have confirmed that a number of such deals have been available in the market for the last few weeks.Some of these institutions are highly leveraged and their mortgage related assets in the US are getting marked down. There is a need to liquidate some of the assets they bought with their proprietary capital to get cash and strengthen their balance sheet.
Most of these large institutions have been investing in real estate in India through both managed and proprietary capital. Wachovia does not have a fund and has been investing from its proprietary books for the last two years, though at the moment they are looking at investing selectively from their proprietary books in India.Market sources though confirm that there are a few of Wachovia's real estate deals that are being looked at closely. Interestingly, Merrill Lynch had merged its proprietary book with its third-party fund early this year so they are safe on that front after the recent events. DSP Merrill Lynch has made proprietary investments of $500 million in the real estate segment.
Most of these large institutions have been investing in real estate in India through both managed and proprietary capital. Wachovia does not have a fund and has been investing from its proprietary books for the last two years, though at the moment they are looking at investing selectively from their proprietary books in India.Market sources though confirm that there are a few of Wachovia's real estate deals that are being looked at closely. Interestingly, Merrill Lynch had merged its proprietary book with its third-party fund early this year so they are safe on that front after the recent events. DSP Merrill Lynch has made proprietary investments of $500 million in the real estate segment.
Friday, November 30, 2007
Vatika sells 10% to 3 PE funds
Vatika Group, a Delhi-based realty firm, has divested 10.75 per cent for raising $250 million (Rs 1,000 crore) as private equity investments from Wachovia Bank, Baer Capital and Goldman Sachs. The deal estimates the valuation of the privately held Vatika at around Rs 9,302 crore.This is the first private equity investment in Vatika, which is planning its maiden public issue in 2009.
Vatika’s valuation at Rs 9,302 crore is higher than the market capitalisation of some listed bigwigs such as Bangalore-based Sobha Developers (Rs 6,269 crore) and Purvankara (8,284 crore); its Delhi peers such as Parsvnath Developers (Rs 6,398 crore), Omaxe (Rs 7,111 crore) and AnantRaj (Rs 8,557 crore) and the Mumbai-headquartered companies such as Akruti City (Rs 7,705 crore).
Read more in The Business Standard article.
Vatika’s valuation at Rs 9,302 crore is higher than the market capitalisation of some listed bigwigs such as Bangalore-based Sobha Developers (Rs 6,269 crore) and Purvankara (8,284 crore); its Delhi peers such as Parsvnath Developers (Rs 6,398 crore), Omaxe (Rs 7,111 crore) and AnantRaj (Rs 8,557 crore) and the Mumbai-headquartered companies such as Akruti City (Rs 7,705 crore).
Read more in The Business Standard article.
Friday, August 24, 2007
Syndicate Bank to raise $125 million
Syndicate Bank is firming up plans to raise $125 million in the current fiscal through innovative perpetual bonds to boost its tier-I capital. The Manipal-headquartered bank is expected to get the board approval next month.
This issue, if the global markets cheer up, is expected to run parallel to the bank’s follow-on public issue which is also expected to hit the market by early next year. The bank, through this public offer, is expected to raise capital in the range of Rs 600-Rs 700 crore.
Syndicate Bank’s total assets is at Rs 91,000 crore which is expected to grow by 15 per cent by end of FY08. To maintain this growth momentum, it will have to raise more tier-I capital. Its capital adequacy ratio is currently at 12.62 per cent.
The decision to raise the $125 million comes just months after it recently raised $100 million from Wachovia Bank to fund its expansion plans in the European market. The bank is in the process of expanding its global presence by entering strategic global centres such as Singapore, China and Hong Kong.
At present, the government holds 66.3 per cent stake in Syndicate Bank, foreign institutional investors hold 13.3 per cent, 3.47 per cent is held by domestic institutional investors, while the rest by the general public. The bank is in the process of implementing Basel-II recommendations.
This issue, if the global markets cheer up, is expected to run parallel to the bank’s follow-on public issue which is also expected to hit the market by early next year. The bank, through this public offer, is expected to raise capital in the range of Rs 600-Rs 700 crore.
Syndicate Bank’s total assets is at Rs 91,000 crore which is expected to grow by 15 per cent by end of FY08. To maintain this growth momentum, it will have to raise more tier-I capital. Its capital adequacy ratio is currently at 12.62 per cent.
The decision to raise the $125 million comes just months after it recently raised $100 million from Wachovia Bank to fund its expansion plans in the European market. The bank is in the process of expanding its global presence by entering strategic global centres such as Singapore, China and Hong Kong.
At present, the government holds 66.3 per cent stake in Syndicate Bank, foreign institutional investors hold 13.3 per cent, 3.47 per cent is held by domestic institutional investors, while the rest by the general public. The bank is in the process of implementing Basel-II recommendations.
Monday, June 25, 2007
IndusInd Bank raises $50mn
IndusInd Bank today got a $50 million credit line from Wachovia Bank.
"The funds under this credit line will be utilised for providing trade related financing. The arrangement also cuts the lead time for fund availability generally associated with loan syndications," said Moses Harding, executive vice president and head of wholesale banking group, Indusind Bank.
IndusInd Bank has representative offices in Dubai and London, and has entered into strategic alliances with Union National Bank in the UAE and Doha Bank in Qatar. The bank also has arrangements with sixteen exchange houses in UAE, Kuwait, Bahrain, and Oman to provide convenient, cost-effective, and quick fund transfer facilities to non-resident Indians.
"The funds under this credit line will be utilised for providing trade related financing. The arrangement also cuts the lead time for fund availability generally associated with loan syndications," said Moses Harding, executive vice president and head of wholesale banking group, Indusind Bank.
IndusInd Bank has representative offices in Dubai and London, and has entered into strategic alliances with Union National Bank in the UAE and Doha Bank in Qatar. The bank also has arrangements with sixteen exchange houses in UAE, Kuwait, Bahrain, and Oman to provide convenient, cost-effective, and quick fund transfer facilities to non-resident Indians.
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