Earlier today I read that talks between Wells Fargo (WFC) and Citigroup (C) were breaking down over the acquisition of Wachovia (WB) bank. It looks like they completely fell apart tonight according to this AP report.
I am pretty excited about this news, since I bought shares of Wells Fargo last week in part on the thought they would be able to acquire Wachovia. With the acquisition of Wachovia, Wells Fargo will have a massive retail banking footprint in the United States. Wells Fargo will end up with bank branches covering both the West Coast, and now with Wachovia, also the East Coast.
It is likely that I was a bit early buying Wells Fargo last week at $34.85. It might be time for me to consider adding more on Friday or to even pick up WB instead if those shares provide an arbitrage discount. However, so many other stocks are trading very cheaply that I also have to consider other opportunities as well. I’m starting to feel like I’m being pelted with pitches at this point. It’s getting hard to spot which are the fattest pitches.
Disclosure: I own shares of Wells Fargo (WFC). I have no positions in Citigroup (C) or Wachovia (WB).