Why Bill Ackman Is Long Wachovia (WB)?

Just a short time ago at the Value Investing Congress, Bill Ackman presented his case for why he went long Wachovia (NYSE: WB)

Ackman saw the unusual Wachovia press release that Citi (NYSE: C) would buy Wachovia go across his blackberry in the morning, and his Pershing Square began buying the stock aggressively that afternoon.

Wachovia has been slightly lax in disclosures. In fact, only one press release from Wachoviasince selling itself. Ackman thinks the deal was thrown together rather quickly, as their was even a spelling mistake in the title. Other bidders could have come in, but because Wachovia had to meet certain requirements, they did not have time to put a bid in.

Wachovia owns A.G. Edwards, Wachovia Securities (Prudential (NYSE: PRU) has a minority interest), Evergreen Investments, Wachovia Insurance Services.

After Merrill Lynch (NYSE: MER), Wachovia is second largest broker network, a very large footprint.

If Ackman ran Wachovia, he wouldn't pay any dividends. He would use its existing capital to invest, acquire troubled assets and other such corporate items.

-More to come from Ackman on this story and Ackman at the Value Investing Congress

You May Also Be Interested In

• Bill Ackman’s Pershing Square set to exit Universal Music stake - Bloomberg
• Bollore CEO urges Universal Music to reject Ackman's bid
• Pershing Square Selling About 80.6m Shares In Universal Music - Bloomberg