Citigroup gives up on Wachovia

Calcutta News.Net
Thursday 9th October, 2008

US financial giant Citigroup has said it will no longer seek to exclude Wells Fargo from taking over troubled bank Wachovia.

Citigroup said it was walking away from talks aimed at dividing up Wachovia's assets with rival Wells Fargo.

Hit hard by the credit crisis, Wachovia was known to favour the better offer from Wells Fargo.

In walking away from the deal, Citigroup has said it will seek damages from the two banks over its thwarted purchase.

Wachovia, the fourth largest US bank, had been in danger of failure after its share price fell by more than 70%.

Citigroup stepped in with a bid of $2.2bn in stock for Wachovia's banking activities.

Wells Fargo later made a rival bid of $15bn in an all-stock deal to buy all of Wachovia.

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