The CEO of Wells Fargo & Co (NYSE:WFC), John Stumpf announced that WF might offer funding to General Electric Company (NYSE:GE) for other deals that might emerge.
The bank is almost confident in GE’s future project as evident by the announcement. Despite his announcement, no official figures or estimates have been released o it is not yet clear whether Wells Fargo will carry out their promise.
The Chief Executive Officer, however, announced that if there is to be a deal in the future it will take some time before it can happen. However, the company remains open to the idea. In its latest announcements, the company revealed that it has intentions to buy loan property worth $9 billion from General Electric.
Wells Fargo is not the only company looking to get into the mix. Blackstone Group LP (NYSE:BX) will also purchase real estate and property loans worth $14 billion. So far, Wells Fargo has given out $4 billion to facilitate Blackstone’s purchase.
According to Stumpf, revealing more details about the company dealings with GE would not be appropriate. More than one month ago, General Electric was holding meetings with GE to discuss whether the company should buy just part of general electric’s lending business or the whole of it. The whole operation is made up of loans amounting to $74 billion.
According to sources, Wells Fargo was among the lucky bidders who held talks with General Electric Company (NYSE:GE). Stumpf also added that his company can be described as a value purchaser, and thus the bank is less likely to enter into a bidding competition with the other shortlisted candidates. The CEO is completely confident that his firm will get the deal.
He added that the bank had not anticipated that such a huge deal might be available this year. Thus, they had not planned in advance. Any preparations were made in a hasty manner. Wells Fargo decided to go GE’s loans portfolio because it perfectly fits their loans strategy.
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