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NEW YORK: Shareholders of troubled financial services firm Wachovia Corporation have given their approval for the merger with banking major Wells Fargo, a move that will create one of North America's most extensive financial services distribution network .

Shareholders of Wachovia Corporation at their special meeting approved the merger and around 96 per cent of the votes cast by Wachovia shareholders approving the multi-billion dollar transaction. Wells Fargo and Wachovia Corporation announced their inte ntion to merge on October 3 that would create an entity with one of the largest deposit base.

The transaction is expected to close by the end of the year. “We are pleased that Wachovias shareholders agree that the Wells Fargo and Wachovia combination will provide growth and long-term value to shareholders, customers, employees and our communities ,” Wachovia CEO Mr Robert K Steel said.

Meanwhile, Wells Fargo President and CEO Mr John Stump said “we believe our combined company will be a compelling value for Wachovia shareholders and today's vote shows they agree”

Mr Stumpf further added “shareholders approval is a major step toward completing the merger, we now look forward to the official merger of our two companies a week from tomorrow. The actual merger of our companies operations, products and services will be done over the next two to three years.”

Wells Fargo in a separate announcement further said that four members of Wachovia Corporations board have been elected to join the company’s board of directors. These new board members increase the number of Wells Fargo directors to 20.

“The elections will be effective January 1, 2009, subject to the closing of Wells Fargo’s merger with Wachovia which is expected to be completed by the end of this month,” Wells Fargo said in a statement. - PTI

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