Wachovia talked early with Warren Buffett

CHARLOTTE, N.C., Oct. 16 (UPI) -- Wachovia Corp. top executives discussed a $5 billion deal with U.S. billionaire investor Warren Buffet in September, an unnamed source said.

Three sources said Wachovia executive David Carroll informed managers during a conference call in September about a possible investment, which may have provided confidence in the corporation and attracted other investors, the Charlotte, N.C. Observer reported Thursday.

After word got out that Wachovia was talking about a rescue deal with Morgan Stanley, however, Wachovia share prices went up, making a deal with Buffet prohibitive, the Observer reported.

The deal with Buffet that never occurred has provoked some speculation. When asked whether a deal with Buffett could have kept Wachovia on its feet, Chief Executive Officer Bob Steel said the second guessing would not have stopped.

"If we had raised $5 billion you'd have been all over me the next day saying that's not enough," Steel said.

Steel said the question was a case of "woulda, coulda, shoulda," the Observer reported.

Wachovia, subsequently, struck deals with Citigroup Inc. and then Wells Fargo, which forged a deal to purchase Wachovia for about $12.2 billion.