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Wells Fargo and Citigroup Continue to Battle for Wachovia

Money Morning (October 5th, 2008) Writes:
The battle for battered bank Wachovia Corp. (WB) is heating up with Citigroup Inc.’s (C) win of a court order to extend negotiations, while Wells Fargo & Co. (WFC) contends its merger agreement still stands. Late Saturday evening, Citi won a court order from New York State Supreme Court Justice Charles Ramos granting an injunction to extend the exclusive negotiation period between Citigroup and Wachovia. The original agreement between Citi and Wachovia, reached with assistance and backing from the Federal Deposit Insurance Corp. (FDIC) did not include a signed merger agreement. However, it did grant Citi exclusive rights to negotiate with Wachovia through today (Monday). Wells Fargo’s agreement with Wachovia was announced on Friday, well before the exclusive negotiation clause’s deadline. Despite this breach and the finding by the court, Wells Fargo remains confident in its agreement. "Wells Fargo ...

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