Wachovia, Suitors Extend Litigation Standstill
Friday, October 10, 2008
Wachovia, Citigroup, and Wells Fargo have extended their agreement to suspend all litigation activities until 8 a.m. (EDT) on Friday, October 10. The decision was made in consult with the Federal Reserve to give the companies more time to resolve their dispute over who will acquire the troubled Charlotte, North Carolina-based Wachovia. Previously the litigation shelving was set to expire today at noon.
As DSNews.com reported last week, both Citigroup and Wells Fargo have announced purchase agreements with Wachovia. Wachovia has favored the Wells Fargo deal, which entails the acquisition of Wachovia's entire operations for $15.1 billion in a stock trade. Citigroup initially offered to purchase Wachovia's banking operations for $2.1 billion, and according to Citi, Wachovia would have failed on September 30 if it had not stepped in.
Citigroup has since solicited other companies, including non-banks, to partner in its bid for Wachovia. The Wall Street Journal reported that Citigroup's goal is to win a bigger share of Wachovia's deposits, but not to take over the entire company.
As DSNews.com reported last week, both Citigroup and Wells Fargo have announced purchase agreements with Wachovia. Wachovia has favored the Wells Fargo deal, which entails the acquisition of Wachovia's entire operations for $15.1 billion in a stock trade. Citigroup initially offered to purchase Wachovia's banking operations for $2.1 billion, and according to Citi, Wachovia would have failed on September 30 if it had not stepped in.
Citigroup has since solicited other companies, including non-banks, to partner in its bid for Wachovia. The Wall Street Journal reported that Citigroup's goal is to win a bigger share of Wachovia's deposits, but not to take over the entire company.
