The Chronicle
Sports Duhon's D receives recognition At the basketball team's banquet last night, Chris Duhon was honored along with Shane Battier for defensive excellence. See page 17
Wachovia, First Union combine By MICHAEL BRICK New York Times
First Union Corp. has agreed to buy Wachovia Corp. in a stock deal valued at $13.4 billion, the companies said Monday, in a deal that would create the nation’s fourth largest banking company. Hoping to reduce expenses by $B9O million a year, the North Carolina-based companies plan to cut 7,000 jobs over a three-year period. Mindful of First Union’s recent troubles in integrating mergers, analysts expressed skepticism about the deal. Under the terms of the deal, holders of Wachovia’s stock would receive two shares of First Union stock for each Wachovia share. Based on closing stock prices Thursday, the last day of trading before the deal was announced, Wachovia’s shareholders would have received stock valued at $63.84, representing a 6 percent premium over Wachovia’s stock price. Shares of First Union fell $1.57 Monday, to close at $30.35, reducing the premium. Still, Wachovia’s shares gained $1.85, to $62.05. Though First Union is technically the purchaser, the companies described the deal as a merger of equals, underscoring that notion by retaining only Wachovia’s name. Nine board members would come from each company, while L.M. Baker, chief executive of Wachovia, based in Winston-Salem, would become chair of the new company. G. Kennedy Thompson, chief executive See BANK MERGER on page 7 �
NEAL PATEL/THE CHRONICLE
CONSTRUCTION ON THE WEST-EDENS LINK had to be halted this winter after construction workers discovered a pit of debris under the building site. It cost $300,000 to remove the debris—including stumps and sewer lines—and fill in the hole with dirt and gravel.
Dorm construction hits costly snag By AMBIKA KUMAR The Chronicle
Construction on the West-Edens Link was delayed two months after building crews this winter discovered a large pit of debris underneath the building site. But $300,000 later, construction is back on track.
“We had to excavate further than we normally would in order to take out all the unsuitable soil
White explained that when construction workers calculated the depth of excavation before the proand fill it in with dirt and gravel ject started, they did not find any that packs,” said Judith White, indication of just how much debris director of the Residential Pro- lay under the former Ocean parkgram Review. “The process of ing lot. Among the trash discovered doing that has put us a couple of under the site were several dead months behind.” See CONSTRUCTION on page 14 ¥
New Latino credit union reaches out to community By MARCOS ANTUNA
Center for Support of Minorities—an organization that provides financial supOver the past few years, North Caroliport for community credit unions. All na’s Latino community has been trouthree are nonprofits. Although similar to bled by remarkably high crime rates. Albanks, credit unions are usually nonprofthough Durham police continue to work it and are collectively owned by the with leaders of the community to find somembers. Beyond normal credit union lutions, many Latinos have felt unsafe, functions, the LCCU tailors its programs especially with regard to robberies, specifically to Hispanics, offering financial literacy education in Spanish, among which are common. For that reason, community leaders other resources. The bilingual nature of the LCCU is expressed the need to create a financial safe haven for Latinos. one of the institution’s greatest assets., In August of last year, three non-prof“Statements and receipts, everything is it groups teamed up to create the Latino bilingual, from the moment you walk in Community Credit Union, a financial inthe door,” Herrera said. stitution geared specifically to Latino fiOkie-Holt added that because many nancial needs. Since then the LCCU has Latinos are not confident in their Engbecome a rising institution in Durham, lish-speaking abilities, the possibility of serving more than 1,600 members and conducting financial transactions in securing more than $6 million. Because Spanish is comforting. of its success, the credit union will soon Latinos often keep their money on open a branch in Raleigh before the end their person, and the LCCU has been of the year, said John Herrera, LCCU working hard to discourage this unsafe chair, and another branch may also open practice. The phenomenon began, Okie-Holt in Charlotte. “[The LCCU] has been so successful said, when bank failures in Latin Ameribecause it fulfills a need,” said Alejandra can countries started inspiring a general Okie-Holt, LCCU director of community distrust of financial institutions. Also, education. “The community views it as the cost to open up an account at most an organization owned by a community US. banks may well exceed $250, an that understands the reality and is reamount that some Latinos simply cannot afford. Many Latino immigrants come sponsive to their needs.” The credit union was created as a from economies that are less credit-dejoint effort by the Latino community cenpendent, and are more familiar with ter El Centro Hispano, the Self Help cash, added Okie-Holt. In order to alleviSee LATINO CREDIT UNION on page 15 � Credit Union and the North Carolina The Chronicle
JAVIER HERMANDAVIZ TAMEZ AND MARIA VALENZULA (SEATED) discuss their finances with Veronica Barredo, a customer service representative at Durham’s new Latino Community Credit Union.
Professor one of three finalists for Pulitzer,
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