Laborers International Union leaving AFL-CIO

The Laborers International Union of North America announced that it will be leaving the AFL-CIO as of June 1. The union represents about 700,000 workers in the construction industry and is already part of the Change to Win coalition, which has attracted a number of breakaway unions that cite the AFL-CIO's heavy emphasis on electoral politics and not enough emphasis on attracting more people to the labor movement.

Burger King IPO

Burger King's long-awaited IPO (there's a 2000 BusinessWeek story talking about it) has finally arrived. Today's IPO consisted of 25 million shares priced at $17, which represents a 19% stake in the company.

Wachovia to acquire Golden West

Wachovia (#4 commercial bank in terms of assets, #5 in terms of revenue) agreed to buy California thrift Golden West Financial (the #2 Savings & Loan) for $25.5 billion, a 15% premium. Wachovia says the purchase will help the bank expand in affluent, fast-growing markets in the West. Golden West is an adjustable-rate mortgage specialist but will also give Wachovia 285 new branches, including 123 in California and 26 in Texas.

Shares of Wachovia fell fell 6.7%, the biggest decline since October 2002. Investors worried that Wachovia may have overpaid for Golden West, amid signs of weakness in the mortgage industry as interest rates rise. Wachovia also said the purchase will cut earnings per share by 11 cents in 2007 and seven cents in 2008.

Stories:
Wachovia CEO defends surprise Golden West deal
Wachovia to Acquire Golden West Bank for $26 Billion
Wachovia sees deal as fortification
Wachovia acquires Golden West