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.

4 comments

Woo hoo, I like Wells Fargo. They slap a stagecoach design on pretty much everything. Now if only I hadn't closed out my account when I moved back East six months ago, ....

Sounds like Wachovia or Wells won't need any of OUR $700,000,000,000. That's a start!

It's interesting the Feds were negotiating a sale for two-thirds less than private industry did. Maybe private industry won't pay any attention to the bureaucrats and continue to conduct their own business. After the House voted to pass the bill, the DOW started to drop. Who's in control, the government or private industry? Yep, this $700B bailout will be a flop, but, by that time they will have diverted everybody's attention to another crisis or two to take more tax payer's money and give it to their rich friends.

A New York judge has blocked the sale to Wells Fargo