Citi may be in the process of a law suit as they say the Wells deal violates an exclusivity agreement. Fed's support Citi. http://www.cnbc.com/id/27005847
I'll bet this is the "next deal? that Warren Buffet would not comment or confirm at the Power Woman Conference thing out in CA yesterday. He's probably sitting back in the shadows so he doesn't look bad for this deal. So what do ya do with WB stock? Set a bottom in case this deal goes south to try to mitigate losses? I hate Bank stocks now.
Here is the C press release. Notice how C says that they have an exclusivity agreement with WB, but did NOT have a signed definitive agreement. Looks like a case for the lawyers. NEW YORK--(BUSINESS WIRE)--Citi today issued the following statement: Wachoviaâs agreement to a transaction with Wells Fargo is in clear breach of an Exclusivity Agreement between Citi and Wachovia. In addition, Wells Fargoâs conduct constitutes tortious interference with the Exclusivity Agreement. ADVERTISEMENT The Exclusivity Agreement provides, among other things, that Wachovia will not enter into any transaction with any party other than Citi, and will not participate in any discussions or negotiations with any third party. The Exclusivity Agreement also provides that the parties would be irreparably harmed by any breach of the agreement and that the remedy of specific performance of the agreement is appropriate. Citi was negotiating in good faith and nearly completed the definitive agreements required to consummate the Citi/Wachovia transaction that was announced on Monday. The value of the Citi agreement to Wachovia shareholders was substantially in excess of Wachoviaâs closing price on Thursday, October 2nd. Citi has also been providing liquidity support to Wachovia Bank since Mondayâs announcement. Citi has demanded that Wachovia and Wells Fargo terminate and not proceed with any proposed transaction, any conduct in furtherance thereof, or any other act in violation of the Exclusivity Agreement. Citi has substantial legal rights regarding Wachovia and this transaction. With or without this transaction, Citi maintains an unmatched, globally dominant franchise with strong liquidity, total deposits exceeding $800 billion and a Tier 1 capital ratio of 8.7% as of the second quarter.
"The value of the Citi agreement to Wachovia shareholders was substantially in excess of Wachovia�s closing price on Thursday, October 2nd." That's supposed to get shareholders behind them? LOL Ya, define "substantially". I'll be right there.
WB will be tanking big time on Monday: http://biz.yahoo.com/rb/081005/business_us_wachovia_citi.html?.v=1
this is just hilarious..... wtf were WB and WFC thinking? If deal was made exclusively with C, then why make another deal? This is just pure stupide to me. WB prolly couldn't afford a lawyer to read over the documents........
cramer praised the wb ceo on his show when the stock was at 15 then a week later it tanked to 2 then cramer put him on the ceo wall of shame.Then last week as C scoop[ed up wb cramer recanted his criticism and apologized about putting him on the wall of shame.I wonder if cramerica will flip-flop yet again this week.This guy is pathetic.
Need to watch his show a little closer. He put Steel on the Wall of Shame after the Citi deal was announced. When the Well Fargo deal hit the street, he recanted, apologized and pulled Steel off the Wall of Shame and himself wore a "Scarlet J" because he "J"umped to conclusions about Steel with the Citi deal and realized Steel was working on a better deal.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_rG6edy.Ccc&refer=home No Citi has more time. I don't know how Citi can think their deal is better for anyone but Citi and won't hit some serious resistance especially when the Citi deal includes tax payer assistance right up front and kills off share holders. Citi needs to either just worry about their own financial woes or step up with a deal that makes better sense to everyone else.