Witness4Jesus
October 3rd, 2008, 11:54 AM
http://www.foxbusiness.com/story/markets/industries/finance/wells-fargo-acquires-wachovia-b/
Wells Fargo one-upped rival Citigroup on Friday by unveiling a $15.1 billion deal to acquire all of Wachovia.
The Wells Fargo offer (WFC: 37.29, +2.13, +6.05%) trumps Citigroup’s (C: 20.69, -1.81, -8.04%) offer to acquire Wachovia’s (WB: 6.62, +2.71, +69.30%) banking operations with help from the government.
However, the latest offer could set up a potential legal battle between Citi and Wells Fargo. Citigroup confirmed an earlier FOX Business report by releasing a statement Friday saying it believes the Wells Fargo agreement is in "clear breach" of an exclusivity agreement between Citi and Wachovia.
Citi was blindsided by the Wells Fargo offer and is considering sweetening its original bid and bringing a lawsuit against Wells Fargo, The Wall Street Journal reported.
(Click here to read more on Citi's next moves.)
If approved by regulators and Wachovia shareholders, the all-stock deal will give Wachovia shareholders 0.1991 shares of Wells Fargo common stock in exchange for each share of Wachovia.
Wells Fargo said it will acquire all of Wachovia’s businesses and obligations, including its preferred equity, indebtedness and banking deposits. Boards of both Wells Fargo and Wachovia signed off on the deal.
Wells Fargo, which has managed the credit crisis better than many of its rivals, said it expects to incur $10 billion in merger and integration charges from the deal.
Wells Fargo one-upped rival Citigroup on Friday by unveiling a $15.1 billion deal to acquire all of Wachovia.
The Wells Fargo offer (WFC: 37.29, +2.13, +6.05%) trumps Citigroup’s (C: 20.69, -1.81, -8.04%) offer to acquire Wachovia’s (WB: 6.62, +2.71, +69.30%) banking operations with help from the government.
However, the latest offer could set up a potential legal battle between Citi and Wells Fargo. Citigroup confirmed an earlier FOX Business report by releasing a statement Friday saying it believes the Wells Fargo agreement is in "clear breach" of an exclusivity agreement between Citi and Wachovia.
Citi was blindsided by the Wells Fargo offer and is considering sweetening its original bid and bringing a lawsuit against Wells Fargo, The Wall Street Journal reported.
(Click here to read more on Citi's next moves.)
If approved by regulators and Wachovia shareholders, the all-stock deal will give Wachovia shareholders 0.1991 shares of Wells Fargo common stock in exchange for each share of Wachovia.
Wells Fargo said it will acquire all of Wachovia’s businesses and obligations, including its preferred equity, indebtedness and banking deposits. Boards of both Wells Fargo and Wachovia signed off on the deal.
Wells Fargo, which has managed the credit crisis better than many of its rivals, said it expects to incur $10 billion in merger and integration charges from the deal.