Litigation World | Citigroup v. Wachovia | 3 Oct 2008

NEW YORK - Wachovia says it agreed to be acquired by San Francisco-based Wells Fargo & Co. in a $15.1 billion all-stock deal. But Citigroup now demands that Wachovia abide by the terms of its earlier deal to buy Wachovia's banking operations.

The clash sets up a battle over who will win Charlotte, N.C.-based Wachovia.

The Citigroup deal would have been done with the help of the Federal Deposit Insurance Corp., but the Wells deal would be done without it. The head of the FDIC said the agency is standing behind the agreement it made with Citigroup.

Citigroup says its agreement with Wachovia provides that Wachovia will not enter into any transaction with any party other than Citi or negotiate with anyone else.

Hostile Takeover | Wachovia LBO taps Wells Fargo | 3 Oct 2008

NEW YORK (Reuters) - Wells Fargo & Co agreed to buy Wachovia Corp for more than $16 billion, besting a U.S. government-backed Citigroup Inc bid for some of its assets, in a deal that would catapult Wells Fargo to the top ranks of national consumer banks.
[...]
Wells is buying the whole of Wachovia, including its retail brokerage Wachovia Securities, and its asset management unit, Evergreen. Citi had just bid for Wachovia's banking assets.
[...]
A Wachovia spokeswoman said neither Citigroup nor the Federal Deposit Insurance Corp is involved in the transaction. Citi officials were not immediately able to comment, although the Citi/Wachovia deal was featured prominently on Citi's website Friday morning.

"This deal enables us to keep Wachovia intact and preserve the value of an integrated company, without government support," said Wachovia President and Chief Executive Robert Steel [GS alum, Under Sec. Treasury a/o July 2008, Blueprint signatory a/o March 2008].

and an augur of Centurion Paulson's wars to come ...

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