Citi Ends Negotiations with Wells Fargo over Wachovia
Associated Press
2008-10-10 08:50:00.0
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NEW YORK (AP) - Citigroup says it has ended negotiations with Wells Fargo in their fight to acquire Wachovia.
Citigroup says it believes it has strong legal claims against Wachovia and Wells Fargo for breach of contract and plans to pursue its claims vigorously.
Citigroup agreed last week to buy Wachovia's banking operations for $2.1 billion in a deal orchestrated by the government. 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, but Wells Fargo stock has declined since it was announced.
The parties had agreed to a legal standstill, which was set to end Friday, after the battle for the Charlotte, N.C.-based bank moved to court.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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