Wachovia's Acquisition Policies Lauded
Wachovia Corp., which is buying Golden West Financial Corp., is "very good" at integrating acquisitions, an American Mortgage Network executive told a news conference held by the Mortgage Bankers Association at its secondary mortgage market conference in Chicago.It is a topic on which John Robbins, AmNet's chairman and chief executive, speaks with authority, because a unit of the Charlotte, N.C.-based Wachovia acquired AmNet last year. From his point of view, the acquisition of AmNet was "relatively seamless," Mr. Robbins said. Wachovia, he said, is "very intelligent" about how it brings companies into the fold. Mr. Robbins, who will be the next president of the MBA, said he does not know whether the deal will affect the San Diego-based AmNet, but that there might be synergies between Golden West and AmNet in terms of product originated. Approximately 70% of Golden West's volume is in option adjustable-rate mortgages, he said, while 40%-45% of AmNet's production is in alternative-A loans, option ARMs, and interest-only loans. Mr. Robbins said this is a good time for companies to be making acquisitions, rather than paying top dollar at the height of the market. "The game here is eat or be eaten," he said.