Battle for Wachovia rages

This is getting ugly. Citigroup appeared to have won a victory in what looks to be a nasty courtroom battle for Wachovia. A judge in New York has temporarily blocked Wells Fargo from negotiating with Wachovia by extending Citigroup's exclusivity agreement. The two parties are due before the judge on Oct. 10. This is not over by a long shot. Wells Fargo would appear to have the upper hand in a few respects. Its deal is worth much more than the Citigroup's. It's also pounding home the fact that its deal does not require a dime of taxpayer money. Citigroup can appeal to the fact that it had a done deal (or so it thought) and may suggest that the government favors its deal, though that may no longer be true; the FDIC head told Wachovia to seriously consider the Wells Fargo offer. This is tricky ground. Given the political climate, the government-brokered Citigroup deal may be hard to defend. Regulators may also be second-guessed for rushing the Citi-Wachovia deal with taxpayer assistance without looking to better pure-private alternatives.

For more:
- here's a New York Times update
- here's an AP article 
- tax ruling may have helped Wells Fargo. Article
- Ackman to make presentation on Monday about Wachovia. Article

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