Citigroup Ends Bid To Buy Wachovia

[struggle4progress]

Source: Washington Post

By Binyamin Appelbaum
Washington Post Staff Writer
Friday, October 10, 2008; Page D01

Citigroup has ended its pursuit of Wachovia, allowing Wells Fargo to proceed with its $15 billion deal to buy the troubled Charlotte bank and emerge as one of the largest retail and commercial banks in the United States.

Citigroup said, however, that it would continue to press a lawsuit seeking more than $60 billion from Wells Fargo and Wachovia for striking a deal after Wachovia had agreed to negotiate exclusively with Citigroup ...

Wells Fargo will become the largest bank in the Washington area, and it will join Bank of America and J.P. Morgan Chase in a small group of giants that now control about a third of the U.S. retail and commercial banking industry ...

The government stands to lose billions of dollars in tax revenue from the deal. Under a new change in tax regulations, Wachovia's losses will allow Wells Fargo to avoid at least $20 billion in federal taxes, according to analyst estimates ...



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/10/09/AR2008100903308.html?hpid=topnews

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Wells Fargo's $12 Billion Bid Wrests Wachovia From Citigroup
By David Mildenberg and Bradley Keoun

Oct. 10 (Bloomberg) -- Wells Fargo & Co. will become the largest U.S. bank by branches with an $11.7 billion offer for ailing rival Wachovia Corp. that trumped a competing bid by Citigroup Inc.

Wells Fargo, based in San Francisco, and Wachovia said late yesterday they will stick to the terms of the all-stock deal they struck Oct. 3, four days after Citigroup's offer. At current prices, it values the Charlotte, North Carolina-based lender at about $5.43 per share.

The deal marks Wells Fargo Chairman Richard Kovacevich's biggest takeover since he led Minneapolis-based Norwest Corp.'s purchase of Wells Fargo, founded in 1852, 10 years ago. Like JPMorgan Chase & Co., which last month acquired Washington Mutual Inc., he took advantage of the worst financial crisis since the Great Depression to extend his geographic franchise ...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aUpv3.YOFyRU&refer=home

[BeFree]

1. There you go...

...now we see the reasons for this mess. The little fish are being eaten by the big fish. 'Twas ever thus. No need to get ones panties in a twist.

[Norrin Radd]

2. Yep.

[aquart]

3. Anytime Citi doesn't get what it wants is a good time to me.

They are thieves to the bone.

[PatrynXX]

4. Didn't want citi to have it

Don't like Wells Fargo, but still better than Citi.

[aquart]

5. Yep.

[indio55555]

6. Wells Fargo should complain....

And make Citigroup buy Wachovia….. Wells Fargo wanted to talk to Wachovia and Citigroup had them blocked from negotiating.