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Wachovia to Get Capital Infusion: WSJ

Wachovia may get a capital infusion of roughly $6 billion to $7 billion from outside investors, The Wall Street Journal said on Sunday.

A Wachovia branch bank is shown in a Charlotte, N.C. file photo from July 20, 2006. After a rough year, the banking industry appears headed for another in 2007. (AP Photo/Chuck Burton, File)
Chuck Burton
A Wachovia branch bank is shown in a Charlotte, N.C. file photo from July 20, 2006. After a rough year, the banking industry appears headed for another in 2007. (AP Photo/Chuck Burton, File)

The terms of the deal were being finalized on Sunday night, but Wachovia could get funding from investors who would get discounted shares in the company, the newspaper said in its electronic edition.

The investors would get shares priced at roughly $23 to $24 each, the newspaper said. That marks a discount compared with Wachovia's closing stock price of $27.87 on the New York Stock Exchange.

Wachovia could not be immediately reached for comment.

But the bank issued a statement that it rescheduled the release of its first quarter earnings and would announce its results on Monday instead of Friday.

The cash infusion for Wachovia would be structured similarly to the $7 billion infusion announced by Washington Mutual Inc. last week, the newspaper said.

One potential Wachovia investor is private-equity firm Warburg Pincus, the newspaper said. Warburg Pincus declined to comment.

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