Citi, Wells Fargo Take Breather

Wall Street Journal (10/07/08) P. C1; Enrich, David; Fitzpatrick, Dan
The legal battle involving Wachovia Corp., Citigroup Inc. and Wells Fargo & Co. is on hold until noon on Oct. 8 so that the banks can take a breather, although the Federal Reserve wants the matter of Wachovia's acquisition to be settled soon to avoid generating worries among investors and customers. The tug-of-war commenced on Oct. 3, when Wachovia announced a $15 billion buyout by Wells Fargo days after reportedly entering into a $2.1 billion agreement with Citigroup. While dividing up an integrated business remains a challenge, observers believe Wachovia branches in the Northeast and mid-Atlantic region will be acquired by Citigroup and those in the Southeast and California will be taken over by Wells Fargo.