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The fight over control of Wachovia intensified Saturday, as a judge temporarily agreed to block the sale of the bank by Wells Fargo, Citigroup announced in a news release.
State Supreme Court Justice Charles Ramos issued the order blocking the sale of Wachovia Corp., which Wells Fargo & Co. had agreed to purchase in a $14.8 billion deal.
Citigroup Inc. accused Wells Fargo of trying to cut off its earlier takeover offer of Wachovia's banking operations for $2.1 billion in a deal struck with the assistance of the Federal Deposit Insurance Corp.
The battle for control of troubled bank Wachovia tilted toward Wells Fargo Sunday as a state appeals court blocked a lower court ruling that had favored rival bidder Citigroup.
In the Sunday night ruling, the Appellate Division of State Supreme Court threw out an order by Justice Charles Ramos issued late Saturday at the request of Citigroup; the order would have extended the time under which Wachovia and Citigroup had to complete their deal.
It was clear from documents filed in federal court Sunday that Wachovia was in considerable trouble when it agreed to the deal. Wachovia disclosed that it agreed to the deal "with the understanding that a seizure of its banking assets later that day by the Federal Deposit Insurance Corp. would occur" unless it accepted Citigroup's proposal.
Originally posted by SEEWHATUDO
Um okay we bank at Wachovia, can you layman this article?
So far we have been told business as usual folks...
Citigroup Inc. walked away from its attempted purchase of Wachovia Corp., handing victory to Wells Fargo & Co. in a struggle for the nation's sixth-biggest bank.
Citigroup had offered two weeks ago to buy the Charlotte, North Carolina-based lender's banking operations for $2.2 billion in a government-assisted transaction. That bid was trumped last week by San Francisco-based Wells Fargo's $15 billion offer for the entire company. The two spent this week negotiating a possible split of the assets.
The Federal Reserve said on Sunday it approved the takeover of Wachovia Corp and its banking subsidiaries by Wells Fargo & Co of San Francisco.
The Fed's decision formally made Wells Fargo the victor in a battle between it and Citigroup, which also had sought to acquire the Charlotte, North Carolina-based bank. Citigroup dropped out of the chase last Thursday.