Citi Demands Wells Fargo Give Wachovia Back

Bank says new buyout violates an exclusivity agreement

By Nick McMaster, Newser Staff

Posted Oct 3, 2008 11:43 AM CDT

(Newser) – Citigroup is seeking to nullify the Wells Fargo takeover of Wachovia announced this morning, Bloomberg reports. Citi claims the $15.4 billion deal violates an exclusivity agreement it had worked out with Wachovia early this week. "Citi has substantial legal rights regarding Wachovia and this transaction,'' the bank said in a statement.

The FDIC said it would work with all three institutions to ensure “a resolution that serves the public interest.” Citi had offered to buy parts of Wachovia for $2.16 billion. US bank regulators said they hadn’t yet reviewed the Wells Fargo deal but would evaluate it and “the issues that it raises.”

[Images (3)]

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A Wells Fargo customer walks into bank in Mountain View, Calif., Wednesday, Sept. 17, 2008. (AP Photo/Paul Sakuma)

A woman is reflected in the window of a Wachovia Corp. branch office in New York on Monday, Sept.29, 2008. (AP Photo/Peter Morgan)

Flags fly over the Citigroup corporate headquarters Monday, Sept. 29, 2008 on Park Ave. (AP Photo/Craig Ruttle)

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Wachovia's agreement to a transaction with Wells Fargo is in clear breach of an exclusivity agreement between Citi and Wachovia.
- Citigroup press release

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Citi Demands Wells Fargo Give Wachovia Back