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National Briefing / NEW YORK

Citigroup bid for bank is upheld

October 05, 2008|From Times Wire Reports

Citigroup Inc. said Saturday that a New York state court judge granted an order extending the bank's "exclusivity agreement" with troubled Wachovia Corp., after Wells Fargo & Co. on Friday made a competing bid for the North Carolina lender.

New York State Supreme Court Judge Charles Ramos issued the emergency injunction Friday night, extending Citigroup's agreement to negotiate the acquisition of parts of Charlotte, N.C.-based Wachovia "until further order of the court," Citigroup said in a statement.

Citigroup, which has been hobbled by $61 billion of subprime-loan-related losses, is in the midst of a takeover battle with Wells Fargo for control of Wachovia.

Wells Fargo agreed to buy all of troubled Wachovia, whereas the Citigroup deal would exclude Wachovia's brokerage arm and mutual fund units.

Spokesmen for Wachovia and Wells Fargo didn't return requests for comment after Citigroup announced the court order.

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