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Report: Wachovia could be divided between Citigroup, Wells Fargo
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Published: October 6, 2008
Federal Reserve officials were seeking a compromise last night between the two suitors for Wachovia Corp. to reach a compromise that would carve the company up between them, according to a published report this morning.
The Wall Street Journal reported that a plan being discussed last night would divide Wachovia's 3,346 branches between Citigroup and Wells Fargo & Co., with Citigroup getting branches in the Northeast and mid-Atlantic regions and Wells Fargo taking those in the Southeast and California.
Discussions on the deal were expected to continue today after no resolution was reached last night, the newspaper reported.
The discussions came after a busy weekend of court actions as the two banks wrestled over Wachovia's future. Last night, the Appellate Division of State Supreme Court threw out an order by Justice Charles Ramos issued late Saturday at the request of Citigroup; the order would have extended the time under which Wachovia and Citigroup had to complete their deal.
Citigroup, which announced Sept. 29 that it had received federal government backing to acquire the banking assets of Wachovia Corp. for $2.1 billion, or the equivalent of about $1 a share, said it will appeal the decision.
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