Wachovia Raising $3.5B In Stock Sale

Wachovia Corporation says it will raise 3.5 billion dollars through a sale of preferred shares. The nation's fourth largest bank is looking to rebuild its capital position.

Wachovia said the buyers consisted of about 80 major domestic fixed income investors, but didn't identify them.

The preferred stock will pay a dividend of 7.98 percent for ten years, and thereafter change to a floating interest rate. Wachovia may redeem the preferred stock after 10 years.

Its shares rose 26 cents to $34.44 in trading Wednesday.