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Citi Wins Injunction, Giving Wachovia Deal New Hope
Banking giants will appear before New York Supreme Court on Oct. 10.
October 5, 2008
Citigroup won a court injunction Saturday night upholding the exclusivity agreement it had signed with Wachovia on Sept. 29, when the two giants agreed to merge. Citi went to court after Wachovia took a better offer from Wells Fargo on Oct. 3.
According to Citi, the companies will appear before the New York Supreme Court on Oct. 10.
"Citi remains willing to enter into an agreement with Wachovia which Citi believes would deliver powerful capabilities of the two entities to their respective stakeholders," Citi said in a statement Saturday.
Wells Fargo did not immediately respond but Wachovia spokeswoman Christy Phillips-Brown said in a statement the company believes its agreement with Wells Fargo is "proper, valid and ... in the best interest of shareholders, employees and the American taxpayers." According to the Associated Press, she said Citigroup is free to make a better offer to Wachovia under that agreement.
To read Citi's complete statement on the injunction, click here.
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