Wells, Citi extend Wachovia standstill

The rivals agree to hold off on litigation until Friday in their conflict to purchase the ailing bank.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Kenneth Musante, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Citigroup and Wells Fargo, the two banks fighting to buy Wachovia, agreed on Wednesday to extend a standstill on legal wrangling over the deal until Friday.

The banks originally announced Monday afternoon that they would halt all legal activities until today. The new agreement expires on Friday at 8 a.m. ET.

Citigroup, Inc. (C, Fortune 500) announced on September 29 that it was taking over Wachovia's (WB, Fortune 500) banking operations for $2.2 billion with backing from the Federal Deposit Insurance Corp.

However, Wells Fargo & Co. (WFC, Fortune 500) threw a wrench in those plans just four days later, offering to buy Wachovia outright for $15.1 billion with no federal assistance whatsoever.

After a weekend of intense litigation, the New York State Supreme Court issued a restraining order on behalf of Citigroup to block a Wells Fargo takeover.

That came after Charlotte, N.C-based Wachovia asked a U.S. District judge to declare the part of the Citigroup deal that would have restricted Wachovia from considering competing bids invalid.

A Wells Fargo victory would transform the bank, whose operations and branches are largely located in the Midwest and on the West Coast, into a dominant presence along the East Coast and in the Southeast.

Analysts say a deal for Citigroup is crucial since it would give the bank access to more deposits. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
6 products to keep the skies friendly Plane travel can be stressful, especially during the holidays. These things can help keep the peace among travelers. More
2014: Helluva good year for stocks The bull market has been going for 2,115 days. If you put you're money in stocks, it's been a very happy year. More
7 up-and-coming foodie destinations These seven cities are seeing a growing interest in local food boost the economy -- and produce some seriously tasty eats. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.