Wachovia snubs Citigroup, sells to Wells Fargo
Four days after the FDIC announced it had brokered a deal for Citigroup to buy ailing Wachovia, the Charlotte-based bank announced this morning that it had left the negotiating table with Citigroup and was instead selling itself to San Francisco's Wells Fargo. The new deal makes for a much better deal for Wachovia shareholders than the one the feds had annouced. Citigroup was to buy Wachovia for $2.2 billion; Wells Fargo will pay $15.1 billion. The deal seems to have encouraged Wall Street. Wachovia stock closed at $3.91 per share yesterday, and opened at $6.94 this morning, an increase of 77 percent.