Posted on 10/03/2008 8:57:03 AM PDT by NCjim
NEW YORK — Citigroup on Friday demanded that Wachovia call off its proposed $15.1 billion merger with Wells Fargo, saying it has an exclusive deal to buy the Charlotte-based bank.
Wachovia's announcement early Friday of the all-stock deal with San Francisco-based Wells Fargo & Co. was an abrupt reversal that trumped Citigroup's plan to acquire Wachovia's banking operations with government assistance.
The Citigroup deal would have been done with the help of the Federal Deposit Insurance Corp., but the Wells Fargo deal for Wachovia will be done without it. Shares of Wachovia and Wells rose in morning trading, while Citigroup shares fell.
"This deal enables us to keep Wachovia intact and preserve the value of an integrated company, without government support," Robert Steel, Wachovia's president and chief executive, said in a statement.
Citigroup issued a statement that said the proposed merger between Wachovia and Wells Fargo was "in clear breach of an exclusivity agreement" between Citigroup and Wachovia.
"Citi was negotiating in good faith and nearly completed the definitive agreements required to consummate the Citi/Wachovia transaction that was announced on Monday," the statement said. "The value of the Citi agreement to Wachovia shareholders was substantially in excess of Wachovia’s closing price on Thursday, Oct. 2. Citi has also been providing liquidity support to Wachovia Bank since Monday’s announcement."
(Excerpt) Read more at wral.com ...
Ping
Um, did Citibank have it in writing? lol
I long for the day when Bank of America is purchased. Don't see that happening at the moment.
Without the help of FDIC too. Isn’t that interesting. Let’s see how much MSM coverage that line gets. I may open an account at WF
*******
Wells Fargo evidently didn't get the memo. It's only JPM, Bank of America and Citi that are supposed to be scooping up these deposits and tasty assets with federal guarantees.
"Was negotiating"? "Nearly completed"??
LMAO!!!
Like they say, "Oral contracts aren't worth the paper they're not written on."
Wells Fargo eagerly soliciates new accounts from illegals aliens.
Public “demands” are a good indication Citi has no legal standing.
Also, a good indication Wells Fargo made a solid purchase with it’s all-stock offering.
Gosh, don’t ya just hate it when a free market works in spite of poor business decisions?
Paulson and Pelosi are saddened.
Bank of America will be bought by Bank of China. You will have to mail your payroll deposits to Beijing.
The Wells Fargo deal made more sense all along (for Wachovia!) but apparently WF had backed off and Wachovia was forced to go with Citi.
I'm betting this ends up with WF/Wachovia merging but paying Citi $$$.
In come the Arabs to the rescue, pouring huge capital into Citicorp.
The FDIC ( socialist insurers/regulators who remained mum on the sub prime fiasco in support of affirmative action sub prime morgage lending), fashions a deal for the new Arab influenced Citicorp.
Along comes Wells Fargo, ponies up 15.1 billion as a non sub prime mortage operations bank, and rides off into the sunset with its new Wachovia bride.
The Arabs are gnashing their teeth and sweating oil declines to $94.00 per bbl.
A small poetic justice.
Which is all the justice we will likely see for a very long time indeed.
The government is a definite playah in the markets.
Exactly.
Is Citi saying the the Government is telling Wachovia they must sell to Citi at a price less than $7/share?
I own some WB and if Citi wants to pay more than $7, I’m sure Wachovia will listen. Otherwise, take your FDIC and go home.
Bill Clinton disagrees.
But you also have something called the parol evidence rule which works in some circumstances, but not likely here.
North Carolina law recognizes oral contracts. It is correct that it has to be more than “he said, she said”.
Supporting documents, chain of events that reflect past business practice between two parties, etc.
I know. I recently won a rather large case based on oral contract.
However, where I suspect Citigroup is dead in the water is that the WB stockholders had to approve their buyout and have not done so. Therefore, it was not a done deal.
Further, there is no way a WB stockholder will take their deal now that WFC has made this offer.
If City runs it in the ground, all that will happen is that the WB stockholders will vote to reject them and then vote to accept the WFC offer.
So someone is off the track.
Does anyone have any idea what kind of financial shape that Regions Bank is in from all this mess? Honestly, I’m debating whether to deposit a sizeable amount of cash from Charles Schwab into my savings account, or hide it in my mattress and/or canning jars buried in the yard (tongue only slightly in cheek).
“Wells Fargo, ponies up 15.1 billion as a non sub prime mortage operations bank”
Wrong, they are one of the worst, especially giving mortgages to illegal aliens.
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