Wachovia stock rebounds on heels of sale to Citigroup

Wachovia Corp.'s battered stock sharply rebounded Tuesday on a double-dose of encouraging news.

Citigroup reiterated its commitment to buy most assets of the troubled Charlotte, N.C., bank despite the failure of the government's financial bailout plan. And Wachovia said it is financially healthy enough to provide support for the remaining parts of the company that aren't for sale: its securities and asset-management divisions.

Few new details emerged on how the buyout will impact Tampa Bay. Neither bank would speculate on possible layoffs, the eventual name of the bank or changes in local leadership.

"It's just way too early to get into that," Wachovia spokeswoman Kathy Harrison said.

Both banks have tried to reassure local workers by pointing out that they have very little overlap in Tampa Bay. Citi has said it will close 5 percent of its combined branches worldwide.

Citi has about 3,200 employees at its Citi Center site in Tampa, out of about 12,000 employees in Florida. A quarter of its Tampa workers are part of the bank's customer service call center. The rest are part of Citi's corporate operations, or involved in its markets and investment banking divisions, said Citigroup spokeswoman Janis Tarter.

Wachovia holds more than 20 percent of the state's deposits, valued at more than $71.3-billion, and has 720 offices and 15,000 employees around the state, Harrison said.

In the Tampa Bay area, Wachovia has 86 financial centers, 1,500 employees and deposits of $7.7-billion. The bank's local market president is Jim Themides, who replaced Roy McCraw after McCraw retired in July.

Citigroup's $2.16-billion deal, which has been approved by the boards of both companies, is still subject to approval by Wachovia's shareholders and regulators, and must be completed by Dec. 31, according to Citigroup.

Wachovia's shares closed at $3.50 a share, up from $1.66.

Information from the Associated Press was used in this report. Asjylyn Loder can be reached at aloder@sptimes.com or (813) 225-3117.