Citi Suit Blocks Wells' Wachovia Deal

Court order says bank must only deal with Citigroup, for now
By Matt Cantor,  Newser User
Posted Oct 5, 2008 8:00 AM CDT
A court ordered Wachovia to deal only with Citigroup pending a new court decision.   (AP Photo/Paul Sakuma)
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(Newser) – In a victory for Citigroup, a New York Supreme Court judge has halted a deal by Wells Fargo to buy Wachovia until further notice, announced Citi executives. The decision prolongs Wachovia’s earlier agreement to deal only with Citigroup as it battles with Wells Fargo to purchase the sixth-biggest US bank, Reuters reports. Wells Fargo argues that its deal is legal and best for Wachovia and taxpayers.

“Citigroup is always free to make a superior offer to Wachovia,” said a representative for Wells Fargo, which announced Friday it had signed a deal to buy the bank despite a government-backed Citigroup merger that appeared to be in the works.