Negotiation Skills: Proposal
My proposal is to analyze the dealings and negotiations between the merge of Wells Fargo & Company and Wachovia Corporation. Wachovia Corporation had been in talks with Citigroup regarding the merging of the two companies around the end of September in 2008. By September 28, 2008, Wells Fargo had expressed an interest in obtaining the Wachovia Corporation and by October 3, 2008, announced that they were going to go through with the merge. “Wells Fargo had expressed interest in buying Wachovia, but suddenly withdrew from negotiations to buy the company, citing concerns over some of the bank’s loan portfolio.” This was a concern that Wells Fargo & Company needed to evaluate on all aspects. The loan portfolio for a bank is a huge part of what the bank has to offer and what they have done for themselves and evaluating the concerns is a very important thing to do. Had Wells Fargo & Company walked in to this blindly, they could have ended up in the same situation that brought them to Wachovia Corporation in the first place. Mergers happen all the time, and the brunt of this is done through banking and lending companies. The biggest part of this negotiation was that it all happened so quickly. Whether it was a blessing in disguise for Wachovia Corporation to know that there were two large companies (Wells Fargo & Company and Citigroup) that both had a large interest in purchasing their banking company. I would like to analyze the negotiations made by Wells Fargo & Company and whether or not they made the correct move. Were they were able to accomplish what they wanted and needed to accomplish in this merge?
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