Business
Firms extend talks over Wachovia purchase
Charlotte, N.c. | October 09, 2008 12:01:13 AM IST
Talks between Citigroup and Wells Fargo over the purchase of North Carolina's Wachovia Corp. have been extended to Friday, Wachovia said. An unnamed source told The Charlotte (N.C.) Observer that all options were still open in the battle to purchase all or parts of Wachovia. The wrangling began when Wells Fargo trumped a $1-per-share purchase offer made by Citigroup with a $7-per-share offer of its own. Citigroup intended to purchase Wachovia's banking operations, whereas Wells Fargo intended to buy the entire company. Citigroup filed suit against Wells Fargo demanding $60 billion in damages and both sides agreed to negotiate out of court. In an assessment of the deal, Christopher Mutascio of Stifel Nicolaus told the Observer either deal would come out roughly the same for shareholders and the government. The government stands to lose as much as $21 billion in taxes, as Wachovia's losses would transfer to the buyer's bottom line. (UPI)
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