Wells Fargo buys Wachovia (bankruptcy, creditors, borrow, purchase)

[Alanboy395]

Citibank should just shut up. Wachovia should take the best deal possible.

[Humboldt1]

This is shaping up to be another Pennzoil/Texaco lawsuit. With the Huntman decision just a few days ago forcing their merger Citi may have some legal backing.

I think Citi might still end up with WB or at the very least a settlement.

The board will be extremely biased toward the WF deal as this involves a 250MM parachute for key execs. If Citi takes over look for them to really clean house now.

This story is still developing. Any other updates? The markets may have jumped the gun on this one.

[Humboldt1]

This is shaping up to be another Pennzoil/Texaco lawsuit. With the Huntman decision just a few days ago forcing their merger Citi may have some legal backing.

I think Citi might still end up with WB or at the very least a settlement.

The board will be extremely biased toward the WF deal as this involves a 250MM parachute for key execs. If Citi takes over look for them to really clean house now.

This story is still developing. Any other updates? The markets may have jumped the gun on this one.

[Kootr]

Originally Posted by Humboldt1

This is shaping up to be another Pennzoil/Texaco lawsuit. With the Huntman decision just a few days ago forcing their merger Citi may have some legal backing.

I think Citi might still end up with WB or at the very least a settlement.

The board will be extremely biased toward the WF deal as this involves a 250MM parachute for key execs. If Citi takes over look for them to really clean house now.

This story is still developing. Any other updates? The markets may have jumped the gun on this one.

The Pennzoil/Texaco suit was a long time ago and many things have changed since then. Plus, you have a totally different set of circumstances surrounding the WB - Citi deal.

If the FDIC and Fed say that WB must stick with the Citi deal it must have shareholder approval. Don't you expect that Bob Steele, WB's CEO, and the WB Board will recommend AGAINST the deal with Citi? And when it does not get approved, they will request shareholder approval FOR the WFC deal. The owners of WB (the shareholders) will be the ones that will ultimately decide.

[Humboldt1]

Of course Steele wants his piece of the 250MM golden parachute that the deal with WF gives him. With Citi he gets nothing.

I still think WF and WB merge but that Citi gets something for their trouble. If Citi were to take over they would fire the entire top brass for this ordeal.

The WF deal is clearly better for WB shareholders. I just think Citi will not walk away empty handed.

Either way, this whole ordeal makes the top brass at Citi look rather silly.

[car54]

I don't give a damn....as long whoever ends up with WB can find my 185 grand when the CD matures next August!

[Kootr]

Originally Posted by car54

I don't give a damn....as long whoever ends up with WB can find my 185 grand when the CD matures next August!

Don't worry, your CD is way under the new FDIC protection limit of $250K.

[HappyTexan]

Well Citi went to court and got an emergency order:
Under judge's order Wachovia can't negotiate with others: Citi - Yahoo! News

[Kootr]

Originally Posted by HappyTexan

Well Citi went to court and got an emergency order:
Under judge's order Wachovia can't negotiate with others: Citi - Yahoo! News

This is expected. Since WB did NOT fail like many other financial institutions, the sale of WB will be up to the WB shareholders. WB shareholders will not approve the C deal if it goes before the shareholders. And further, the CEO and BOD will recommend AGAINST shareholder approval if a judge forces it.

Under that agreement, Citigroup is always free to make a superior offer to Wachovia.

[Humboldt1]

I think WF should just give Cit 5B dollars to walk away and continue with their plans to acquire Wachovia.

You can't compare the Citi and WF offers as they are apples and oranges. I don't think the board of WB would side with Citi even if they were to provide a better deal as Citi taking over would almost certainly end their careers at WB.

If Citi still takes over WB there will be a lot of bad blood and tons of house cleaning, especially among the executive ranks who sided with WF.

I think it is better if WF takes over WB. WF should have done this deal last week before waiting to see if the bailout would pass and the new IRS tax provisions were put in place.

I have shares of both Citi and WF and bank at Citi as well as several other banks. There are other acquisitions, particularly in the Chicago market that would benefit me more than WB.