Prudential Financial Inc. (NYSE:PRU) has completed a long-awaited deal to sell a minority interest in Wachovia Securities Financial Holdings L.L.C. to the majority owner.
Prudential, Newark, N.J., ended up with the stake in Wachovia Securities when it sold control of the unit to Wachovia Corp., Charlotte, N.C.
Prudential also had an option to sale the minority stake to Wachovia.
Wells Fargo & Company, San Francisco, acquired Wachovia earlier this year, after Wachovia suffered heavy losses as a result of the turmoil in the mortgage lending and mortgage-backed securities markets.
Wells Fargo now has paid Prudential $4.5 billion in cash for the securities unit stake, Prudential says.
"In addition, Prudential received $418.4 million in payment of the principal and accrued interest on a subordinated promissory note that Wachovia Securities had issued in connection with the establishment of the joint venture," Prudential says.
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