Wells Fargo Buys Troubled Wachovia for $15.1 Billion

"Wachovia will snub Citigroup and jump into the arms of Wells Fargo instead, upending a government-arranged rescue of the troubled bank in favor of a more traditional merger, the companies announced this morning.

The new deal pays Charlotte-based Wachovia shareholders $15.1 billion instead of the $2.2 billion offered by Citigroup. Wells Fargo also said it will not need a government backstop, something Citigroup had demanded.

If this deal is completed, it will create a retail and commercial bank with branches from coast to coast but almost no presence on Wall Street. Wells Fargo, which is based in San Francisco, also would become the largest bank in the Washington area. "

The joys of the credit crisis, lets hope these new super banks can last.

	Court tilts Wachovia fight toward Wells Fargo	Associated Press	Fri Oct 3	5
	Wells Fargo agrees to buy Wachovia for $15B, Citigroup Demands Deal be Cancelled	Yahoo! News	Fri Oct 3	2