New York, Oct 23: Prudential Financial and Wachovia are discussing ways to combine their brokerage units and create one of the world’s largest independent stock research and advisory operations, sources familiar with the situation said. The talks, which are still in preliminary stages, would combine the two brokerage operations under a joint venture with more than 13,500 brokers, sources said.

Several important details, including management, ownership stakes and what resources each side would commit to such a venture, are still being negotiated and talks could fall apart at any time, sources cautioned.

A spokesman for Prudential, the No 2 US life insurer, declined to comment. A spokeswoman for Wachovia, the No 4 US retail bank, could not be reached for comment.
An agreement would mark the first significant step by any US financial institution to establish an independent brokerage business since regulators began investigating several Wall Street firms, including Wachovia. Investigations concern allegations that the firms provided favourable research for clients in exchange for more lucrative investment banking business.
Bureau Report