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February 07, 2005
Wachovia Securities Forms New Equity Division
Equity Capital Markets, Equity Linked Products groups combined to form new division
CHARLOTTE, N.C. -- Wachovia Securities announced plans today to combine its Equity Capital Markets and Equity Linked Products units into a newly formed Equity Division, positioning the firm to accelerate the growth and profitability of one of its core corporate and investment banking businesses.
"The combination of our cash, convertibles and equity derivatives businesses will allow Wachovia to better serve our corporate and institutional clients with multi-product solutions that are becoming the industry norm," said Ben Williams, Managing Director and head of Global Capital Markets.
Wachovia Securities created the new Equity Division as part of a strategy to increase its share of lead-managed stock offerings and capitalize on the convergence of the cash equity and equity derivatives markets, Williams said.
Leadership selections for the Equity Division will be announced later in the first quarter.
Wachovia Securities last year was an underwriter on 97 equity offerings and lead manager on 34 of those transactions, ranking 10th in industry league tables based on number of deals. The equity capital markets business has grown at a compound growth rate of 25 percent a year since its formation five years ago. Wachovia Securities also ranks as a top ten trader of U.S. convertible bonds and institutional equity derivatives.
The newly formed Equity Division will provide origination, sales and trading of cash, convertible and equity derivatives. The division is part of the Wachovia Securities Global Capital Markets group, which also includes the Fixed Income Division and Global Research group.
"This is a strategic move to reposition our equity business to be more origination driven, and to leverage our competitive advantages as a universal bank, including a strong balance sheet, deep corporate client relationships and distribution capabilities through one of the nation's premier retail brokerage networks," Williams said.
Wachovia Securities is a full-service investment bank providing clients with equity, fixed income, and convertible research, financial sponsors coverage, corporate finance and mergers and acquisitions advisory services. In addition, Wachovia Securities provides such products as debt and equity financing, loan syndication, derivatives, equity investments, asset securitization, treasury services and international correspondent banking.
Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $493.3 billion, market capitalization of $83.5 billion and stockholders' equity of $47.3 billion at December 31, 2004. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve customers primarily in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, serves clients in 49 states and five Latin American countries. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through Wachovia.com.
Wachovia Securities is the trade name for the corporate and investment banking, institutional brokerage and securities research businesses of Wachovia Corporation and its subsidiaries, including Wachovia Capital Markets LLC, member NYSE, NASD, SIPC. Wachovia Securities is also the trade name for the retail brokerage businesses of Wachovia Corporation and its subsidiaries including Wachovia Securities, LLC, member NYSE, NASD, SIPC.
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