Wells Fargo & Co. will remove Wachovia Corp.’s name from a PGA Tour golf tournament, saying use of the bank’s brand may give investors "mixed signals about our priorities."

Wells Fargo, which bought Wachovia in December, renamed the event the Quail Hollow Championship after the club where it’s held, the San Francisco-based bank said in a statement today. Wells Fargo also said it won’t host client entertainment events tied to the tournament, starting in April in Wachovia’s hometown of Charlotte, North Carolina.

Wells Fargo still plans to honor sponsorship obligations, spokeswoman Mary Beth Navarro said in an interview. "We have a contractual commitment and we take those very seriously," she said.

Wells Fargo, the recipient of $25 billion in U.S. funds as part of the banking industry bailout, is reducing spending on corporate events and suspending executive bonuses amid pressure from the government to reel in discretionary costs. The bank said this week that it’s cutting costs associated with the Charlotte golf tournament after lawmakers criticized Northern Trust Corp. for spending on clients and employees at a company- sponsored tournament.

Wachovia renewed its contract with the PGA in 2008 and extended it through 2014. Wells Fargo hasn’t determined what the tournament will be named in future years.

Wells Fargo slid 91 cents, or 6.3 percent, to $13.49 at 12:16 p.m. on the New York Stock Exchange. The shares have lost more than half their value this year.