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THURSDAY, NOVEMBER 26, 2009
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Citi Demands Wells Fargo Give Wachovia Back

Bank says new buyout violates an exclusivity agreement

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(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.”

A Wells Fargo customer walks into bank in Mountain View, Calif., Wednesday, Sept. 17, 2008.
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.
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.
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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Citigroup • Wachovia • Wells Fargo • takeover • buyout • FDIC • financial crisis

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