Posted on 10/05/2008 9:04:22 PM PDT by TigerLikesRooster
Wells Wins Rounds In Fight For Wachovia
Liz Moyer, 10.05.08, 11:24 PM ET
The battle between Citigroup and Wells Fargo for Wachovia continued late into Sunday, with federal court appearances, a tussle in New York State court and ongoing negotiations between all parties in a merger dispute that now involves the Federal Reserve.
Wachovia sued erstwhile suitor Citigroup in federal court in New York on Sunday, winning a hearing date for Tuesday in its attempt to back out of a deal in principle struck last Monday under which Citi, working with the FDIC, was to pay $2 billion to buy Wachovia's deposits and assets and back its holding company debt. Wachovia lost its motion Sunday for an emergency injunction and a temporary restraining order.
Late Sunday, a New York state appellate court ruled in Wachovia's favor, throwing out a lower court ruling issued Saturday that halted its talks with Wells Fargo over their alternative $15 billion merger, announced Friday, which would not involve the Federal Deposit Insurance Corp.
New York State Supreme Court Justice Charles Ramos had issued an order late Saturday that would have extended the period of an agreement giving Citigroup exclusive rights to seal a deal with Wachovia. However, an appeals court sided Sunday with Wachovia and Wells Fargo.
(Excerpt) Read more at forbes.com ...
Wachovia’s bylaws require a shareholder vote.
What I’m not sure about is the ability of the fed to muck that up, because no way would they vote for the Citi deal and I seriously doubt Wells would agree to split up the company knowing that.
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