"The package is in draft form,'' Wachovia spokesman Tony Mattera said.

"I wouldn't comment on what people are guessing. The facts will be disclosed next week,'' Mr. Mattera said Friday. 

Wachovia announced plans to acquire A.G. Edwards for $6.8 billion late last month. The new broker- dealer, called Wachovia Securities and based in St. Louis, will be a behemoth, second in size only to Merrill Lynch & Co. Inc. of New York with more than 15,000 reps and advisers operating through a variety of business channels.
Wachovia has set aside more than $1 billion for broker retention over the next six years.

Culture shock
Meanwhile, the registered reps at St. Louis-based A.G. Edwards have experienced a wide range of positive and negative emotions, and thoughts concerning their fate as part of Wachovia, a giant bank that has built up its retail-brokerage group, Wachovia Securities LLC, through a number of acquisitions.  

Some Edwards reps are fearful of the firm losing its close-knit culture when it becomes part of Wachovia. 

 "My initial reaction was shock,'' said one Edwards rep, who asked not to be identified. "But as this begins to unfold, I'm looking at this very enthusiastically.'' 

 The key to a successful merger would be to combine the client-focused culture of A.G. Edwards with Wachovia's deep pockets, said the rep, who added that such a change creates "nervousness'' among the brokers. 

The M&A survey, carried out by WKS Results, points to an escalating growth in both sectors which were best represented with 33 and 29 per cent of responses compared to 20 per cent for sectors including advertising and database marketing.

The industry expects strongest growth in the digital sector, with specialist agencies the primary focus for M&A activity, followed closely by database and direct marketing. Some 66 per cent of respondents expect to see a growth in interactive, compared to 45 per cent for database marketing and 34 per cent for direct marketing.

Respondents say open media, online advertising, mobile marketing and search marketing will propel the growth in the sector, with 49 per cent looking to secure additional skills or services as the lead motive for M&A activity. Open media, which includes blogging and podcasting, is expected to be the fastest growing field of Internet marketing, according to 34 per cent of the respondents.

Mandy Merron, partner at WKS, says: "A number of established businesses are working hard to develop digital expertise and this survey suggests they are right to do so, although there is still a strong market for growing profitable businesses with strong management from any discipline."

Overall, increased activity is expected in the M&A market in 2007, with buyers expecting to be more active than sellers. Levels of enthusiasm for takeovers are rising, with 59 per cent of sellers and 83 per cent of buyers believing they should act now.