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Prudential Financial sold

Wednesday, Feb. 19, 2003 | 9:13 a.m.

CHARLOTTE, N.C. -- Wachovia Corp. said today it agreed to acquire Prudential Financial Inc.'s securities brokerage for individual investors to create the third-biggest U.S. broker by assets, with $537 billion.

Wachovia, the fifth-biggest U.S. bank, and Prudential will combine their retail brokerage and clearing businesses to create a new firm based in Richmond, Va., and run by Wachovia Securities Chief Executive Officer Daniel Ludeman. Wachovia, which will own 62 percent of the new firm, said it will cut 1,750 jobs and close 131 offices by 2005 to save $220 million annually. No cash will change hands.

The transaction, which will create a brokerage with 3,500 locations and estimated 2002 revenue of $4.2 billion, is part of Wachovia Chief Executive Officer Ken Thompson's strategy to sell stocks and mutual funds to Wachovia's 19 million customers. Prudential Financial Chief Executive Arthur Ryan is selling after almost $300 million in losses during the past two years.

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