Wells Fargo plans $10 billion stock offering

/ Source: The Associated Press

Wells Fargo says it will sell $10 billion worth of common stock in a public offering.

The San Francisco-based bank has said it plans to raise $20 billion to finance its acquisition of Wachovia Corp., which was on the brink of failure before the deal was struck.

J.P. Morgan Securities Inc. will coordinate the offering with joint bookrunning managers Goldman Sachs, Morgan Stanley, UBS and Wachovia Securities.

Wells Fargo & Co. shares fell nearly 9 percent to close earlier at $31.68 on Wednesday and spiked 5 percent in aftermarket electronic trading.