Feds Give Green Light to Wells Fargo-Wachovia

Citigroup plans to sue over breach of contract, but will not interfere
By Newser Editors and Wire Services
Posted Oct 10, 2008 3:02 PM CDT
A graphic shows financial statistics for the proposed merger of Wells Fargo and Wachovia.   (AP Photo)
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(Newser) – Federal antitrust regulators cleared Wells Fargo's $11.7 billion acquisition of Wachovia Corp. today, capping a weeklong battle for the Charlotte, NC-based bank. The rapid approval comes a day after Citigroup walked away from its acquisition effort. Citigroup plans to seek $60 billion in damages for breach of contract but has decided not to challenge the Wells Fargo-Wachovia deal in court, the AP reports.

Citigroup agreed last week to an FDIC-brokered deal to buy Wachovia's banking operations for $2.1 billion. Four days later, Wells Fargo stunned Citigroup by announcing that Wachovia's board had agreed to an $11.7 billion all-stock offer. Originally, the deal was valued at $15.1 billion, or $7 a share, but Wells Fargo stock has declined since it was announced.