Wachovia, Prudential To Combine Retail Brokerage Operations
In a deal combining their retail brokerage operations, Prudential Financial Inc. will end up with a 38% ownership stake in the new company, while Wachovia Corp.s stake will be 62%.
Charlotte, N.C.-based Wachovia would fold the Prudential operations into Wachovia Securities and run the combined entity from headquarters in Richmond, Va.
After the combination, the total number of representatives will be 12,486, says a Wachovia spokeswoman.
John Strangfeld, head of Prudentials investment division, would be chairman of the new Wachovia Securities, and Prudential would end up with a 38% ownership stake.
But Strangfeld would report to Donald McMullen Jr., president of Wachovias Capital Management Group, and David Ludeman, president of Wachovia Securities, would be the president of the combined entity.
Wachovia would own a 62% stake, and it would name three of the five board members.