Wells Fargo, Wachovia merger
Wells Fargo announces Wachovia merger
Bankrate reporter Leslie McFadden contributed this entry.
Yesterday I reported that Citigroup agreed to buy Wachovia's banking operations.
Today, Wells Fargo made the surprise announcement that the company would acquire
Wachovia for $15.1 billion in stock, with no financial help from the FDIC. Wachovia
apparently killed its original deal to sell its banking operations to Citigroup
for $2.16 billion.
In response to the agreement between Wells Fargo and Wachovia, Citigroup issued
charging that Wachovia had violated their exclusivity agreement. According to
the press release, "The Exclusivity Agreement provides, among other things,
that Wachovia will not enter into any transaction with any party other than
Citi, and will not participate in any discussions or negotiations with any third
party. The Exclusivity Agreement also provides that the parties would be irreparably
harmed by any breach of the agreement and that the remedy of specific performance
of the agreement is appropriate."
The statement further ordered Wachovia to cease the transaction with Wells
Wells Fargo spokeswoman Lisa Westermann had no comment. Regardless of who scores
Wachovia, the advice for cardholders remains the same -- keep using your cards,
pay your bills on time to the usual address until otherwise notified. Watch
your mailbox for important correspondence from your new issuer.
-- Posted: Oct. 3, 2008