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Wells Fargo Receives Approval to Proceed with Acquisition of Wachovia

After Citi and Wells Fargo Declare Standstill, Wells Fargo Gets Go Ahead From Federal Reserve
By Sasha M Pardy
October 14, 2008 | 5:03 P.M.

Citigroup announced Oct. 9 that its offer still stands to acquire portions of Wachovia for $2.16 billion, however, the company is done discussing the acquisition with Wells Fargo. "The dramatic differences in the parties' transaction structures and their views of the risks involved made it impossible to reach a mutually acceptable agreement," said Citi of its several days of discussion with Wells Fargo. Citi stands by its "strong legal claims against Wachovia, Wells Fargo and their officers, directors, advisors and others for breach of contract and for tortious interference with contract" and said that it plans to pursue damages "vigorously." However, Citigroup has decided not to ask that the Wells Fargo-Wachovia merger be enjoined. On the same day, Wells Fargo announced that it would proceed with its $15.1 billion merger with Wachovia, taking on the whole company in a deal involving assistance from the FDIC or other government agencies. Wells Fargo has an application pending with the Federal Reserve to expedite approval of the merger. On Oct. 12, the Federal Reserve approved Wells Fargo's application to expedite the merger, saying the deal could be completed as early as the end of this week. To review past CoStar coverage on this merger, follow this link.

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