Citi Suit Blocks Wells' Wachovia Deal

Court order says bank must only deal with Citigroup, for now

By Matt Cantor, Newser Staff

Posted Oct 5, 2008 8:00 AM CDT

(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.

A court ordered Wachovia to deal only with Citigroup pending a new court decision. (AP Photo/Paul Sakuma)

The Wells Fargo logo is displayed outside a home mortgage office in Springfield, Ill. (AP Photo/Seth Perlman)

A woman is reflected in the window of a Wachovia Corp. branch office in New York. (AP Photo/Peter Morgan)

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Citi Suit Blocks Wells' Wachovia Deal

Court order says bank must only deal with Citigroup, for now

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Feds Give Green Light to Wells Fargo-Wachovia

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Fed brokers cool-off, banks may be working out carve-up deal

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Citi Suit Blocks Wells' Wachovia Deal

Court order says bank must only deal with Citigroup, for now

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OTHER STORIES ON OUR RADAR

Citigroup • merger • Wachovia • Wells Fargo • negotiations • court order • financial crisis

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Citi May Seek to Recover Wachovia Deal

Bank could make a better offer; may sue Wells Fargo

Wells Fargo Buys Wachovia for $15.4B, Trumps Citigroup

After initial no, Bay Area bank buys out troubled lender

Feds Give Green Light to Wells Fargo-Wachovia

Citigroup plans to sue over breach of contract, but will not interfere

Wells, Citigroup Call Truce in Wachovia Battle

Fed brokers cool-off, banks may be working out carve-up deal

Dow Down 700, Hits 4-Year Low

'This is just about fear right now'

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