Mergers & Acquisitions
Wachovia Lawyer Cites Talks on ‘Grand Solution,’ but Some Snags Reported
Posted Oct 9, 2008, 06:36 am CST
By Debra Cassens Weiss
Wachovia lawyer David Boies said talks between Wachovia Corp. and possible buyers Citigroup and Wells Fargo center on “a possible grand solution,” according to a transcript of a teleconference with a New York federal judge. But the talks may be encountering some snags.
The Associated Press obtained a transcript of the telephone hearing with U.S. District Judge Lewis Kaplan. Boies' reference to a “grand solution” could involve splitting Wachovia between Wells Fargo and Citigroup.
But a Wall Street Journal story (sub. req.) reports on some problems. Sources told the newspaper that a close examination of Wachovia’s books shows more assets of low quality than had been expected. Also at issue is whether both Citigroup and Wells Fargo would have access to Wachovia’s computer system, or whether Citigroup would get full control.
The banks are seeking a mutual agreement that would avoid a court battle. Citigroup has cited an exclusivity agreement that barred Wachovia from discussing a merger with other potential buyers while its $2.2 billion deal was worked out. Wells Fargo later came in with a $15 billion offer that Citigroup wants to block.
Litigation has been put on hold until Friday at the urging of the Federal Reserve, according AP.
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Posted by Ellen Barshevsky - 1 month, 3 weeks, 2 days ago
One day this Wacovia bank is about to go bankrupt, and the next day my bank agrees to buy it, then another bank wants it and their all so busy fighting over it? PLEASE!
I want My bank accounts to be safe. Will they be safe with CITI? I am NOT sure I want them to get these junky home loans—and isnt that what this credit mess is all about?
Mabye that smart guy can advise MY bank to forget about it. I will open up a JOINT account when I marry my boyfriend, and mabye get a home morgage loan too, but I don’t want any junky loans to worry about my assets.
There are very smart people in Washington figuring all of this out so they don’t need my advice today.