Citigroup gives up on acquiring Wachovia
Citigroup announced yesterday that it ended talks with Wells Fargo about acquiring struggling banking giant Wachovia. Looks like it will be mostly smooth sailing for Wells Fargo. Playing hard to get works out in the end.
Read the back story on Blotter.
According to CNN:
Citigroup is no longer looking to buy any of Wachovia's assets.
Citigroup also said that it would not seek to block the merger agreement between Wells Fargo and Wachovia but that it would still seek damages from the two banks for breach of contract.
Wells Fargo has submitted an application to the Federal Reserve Board seeking expedited approval of its merger with Wachovia, the company in a joint statement with Wachovia.
Citigroup said in its statement Thursday that the two companies' acquisition plans were too different to come to a mutually acceptable agreement.
"We did not seek the Wachovia transaction; Wachovia brought it to us," said Citigroup CEO Vikram Pandit in a statement. "We will redouble the focus on our five core businesses."
Wells Fargo will now be one of the strongest financial institutions in the world.