Citigroup Going After Wachovia for Breach of Contract

Citigroup says it has ended negotiations with Wells Fargo in their fight to acquire Wachovia. Citigroup says it believes it has strong legal claims against Wachovia and Wells Fargo for breach of contract and plans to pursue its claims vigorously.

By Associated Press
Published: October 10, 2008

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Citigroup says it has ended negotiations with
Wells Fargo in their fight to acquire Wachovia.

Citigroup says it believes it has strong legal claims against
Wachovia and Wells Fargo for breach of contract and plans to pursue
its claims vigorously.

Citigroup agreed last week to buy Wachovia's banking operations
for $2.1 billion in a deal orchestrated by the government. Four
days later, Wells Fargo stunned Citigroup by announcing that
Wachovia's board had agreed to an $11.7 billion all-stock offer.
Originally, the deal was valued at $15.1 billion, but Wells Fargo
stock has declined since it was announced.

The parties had agreed to a legal standstill, which was set to
end Friday, after the battle for the Charlotte, N.C.-based bank
moved to court.