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Judge delays Wells Fargo deal for Wachovia

By   /   Friday, October 3rd, 2008  /   Comments Off on Judge delays Wells Fargo deal for Wachovia

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A New York state judge temporarily agreed to block the sale of Wachovia to Wells Fargo on Oct. 4, Citigroup officials announced in a news release.

State Supreme Court Justice Charles Ramos issued the order blocking the sale of Wachovia Corp., which Wells Fargo & Co. had agreed to purchase in a $14.8 billion deal.

Citigroup accused Wells Fargo of trying to cut off its takeover offer of Wachovia’s banking operations for $2.1 billion. That deal was made with the aid of the Federal Deposit Insurance Corp. On Oct. 3, four days after that deal was struck, Wells Fargo said it was buying Wachovia.

If the deal Wells Fargo deal goes through, Wells Fargo, previously the second-largest bank in the Tri-Counties with 36 regional branches, will pass Rabobank, N.A., for the No. 1 spot, thanks to the addition of Wachovia’s nine area branches.

Wells Fargo stock closed Oct. 3 down $0.60 at $34.56. Citigroup also was down $4.15 at $18.35.

For more details, buy a copy of the Oct.10 edition of the Pacific Coast Business Times or SUBSCRIBE for $49.99 today.

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