Wachovia to shed 18 SouthTrust branches for Justice Department

<p>Wachovia Corp. has agreed to sell 18 SouthTrust Corp. branches in Florida and Georgia as part of an agreement to secure the U.S. Justice Department's approval of the $14.3 billion merger between the two banks.</p><p>Under the agreement announced Wednesday by the Justice Department and confirmed by the banks, Charlotte-based Wachovia will divest 15 SouthTrust branches in Florida and three in Georgia with about $592 million in total deposits.</p><p>David Oliver, a spokesman for SouthTrust, said each of the branches employs between "eight to 15 workers." He did not have a total number of employees who work at the 18 branches.</p><p>"This divestiture will ensure that banking customers in Florida and Georgia will continue to receive competitive banking services," said R. Hewitt Pate, assistant attorney general of the Justice Department's antitrust division.</p><p>The Federal Reserve's board of governors and shareholders of both companies still must approve the merger.</p><p>No date has been set for Wachovia and SouthTrust shareholders to vote on the proposed merger, according to a statement from the banks.</p><p>"We value the employees, customers and the communities served by the 18 financial centers that are being sold as part of the merger review process for the proposed merger, and we are dedicated to finding buyers that share that commitment," said Ben Jenkins, president of Wachovia's General Banking Group.</p><p>Tom Coley, vice chairman of SouthTrust Corp. said any buyers for the branches will be required to offer positions to the employees of the branches that are being sold.</p><p>"We can assure you that we are confident that customers will experience little or no disruption as a result of this transition," Coley said.</p><p>In afternoon trading, shares of Wachovia stock lost 17 cents to $46.73 on the New York Stock Exchange. Birmingham, Ala.-based SouthTrust fell 4 cents to $40.93 in trading on the Nasdaq Stock Market.</p><p>Wachovia is the nation's fourth-largest bank holding company with assets of $411 billion, and 2,617 branches in 11 states from New York to Florida. SouthTrust has assets of $53 billion, with 740 branches from Texas to Virginia.</p>

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