 Online edition of India's National Newspaper Saturday, Oct 04, 2008 ePaper | Mobile/PDA Version |
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WASHINGTON: U.S. banking giant Citigroup said on Friday that a Wells Fargo deal to buy rival Wachovia is a ‘breach’ of Citi’s exclusive acquisition rights. “Wachovia’s agreement to a transaction with Wells Fargo is in clear breach of an exclusivity agreement between Citi and Wachovia,” Citigroup said in a statement. “Citi was negotiating in good faith and (had) nearly completed the definitive agreements required to consummate the Citi/Wachovia transaction that was announced on Monday,” the bank said. “Citi has demanded that Wachovia and Wells Fargo terminate and not proceed with any proposed transaction.” California-based Wells Fargo said on Friday it had agreed to buy Wachovia for $15.1 billion in stock, ending a government-backed plan for Citigroup to take over Wachovia’s banking operations. Wells Fargo and Wachovia “signed a definitive agreement for the merger of the two companies” without government assistance, the two firms said in a statement. Fed to reviewThe Federal Reserve on Friday said it had not had time to review the proposed sale of Wachovia to Wells Fargo & Co. but will work to make sure that all creditors are protected. The Fed issued a brief statement Friday saying that while it and the Office of the Comptroller of the Currency had conducted an extensive review of a deal announced Monday to have Wachovia’s banking operations purchased by Citigroup, it had not yet had time to review the new offer from Wells Fargo. The Fed statement says that regulators will be working with Wachovia and Wells Fargo “to achieve an outcome that protects all Wachovia creditors, including depositors, insured and uninsured, and promotes market stability.” FDIC supports CitiFederal Deposit Insurance Corp. Chairman Sheila Bair on Friday said the agency was standing behind the agreement it made with Citigroup to buy Wachovia Corp. — Agencies
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