Wells Fargo to raise $10B for Wachovia buy

The capital raising comes one week after Wells Fargo issued 25,000 preferred shares to the Department of the Treasury in exchange for $25 billion as part of the government's plan to inject capital into large U.S. banks.

Wells Fargo & Co. plans to sell at least $10 billion in stock to fund its purchase of beleaguered Wachovia Corp.
The capital raising comes one week after Wells Fargo issued 25,000 preferred shares to the Department of the Treasury in exchange for $25 billion as part of the government’s plan to inject capital into large U.S. banks.
The San Francisco-based bank previously had planned to raise up to $20 billion to fund the all-stock purchase of Wachovia, which it valued at $15.1 billion when the deal was announced Oct. 12.
Wells Fargo expects to complete its purchase of Charlotte, N.C.-based Wachovia by the end of the year.
The transaction is still awaiting shareholder approval.