Citibank was to acquire the banking operation of Wachovia in a deal that was brokered by Federal Deposit Insurance Corporation and US government. Citibank had nearly finalized everything when the battle for the acquisition of the fourth largest bank in US took another turn when Wells Fargo announced that it will buy Wachovia for $15.1bn. Now that much more money has been offered, Wachovia has walked out of its earlier agreement with Citibank.
Citigroup has object to this saying it amounts to breach of agreement which gave exclusive acquisition rights to Citibank. The new deal if finalized will be helpful in keeping Wachovia intact as Citibank was only buying the banking operations for 2.2bn.
Citibank was to acquire the banking operation of Wachovia in a deal that was brokered by Federal Deposit Insurance Corporation and US government. Citibank had nearly finalized everything when the battle for the acquisition of the fourth largest bank in US took another turn when Wells Fargo announced that it will buy Wachovia for $15.1bn. Now that much more money has been offered, Wachovia has walked out of its earlier agreement with Citibank.
Citigroup has object to this saying it amounts to breach of agreement which gave exclusive acquisition rights to Citibank. The new deal if finalized will be helpful in keeping Wachovia intact as Citibank was only buying the banking operations for 2.2bn.
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