Looks like the path is cleared for Wells Fargo (WFC) to acquire Wachovia (WB) over Citigroup (C).
Release Date: October 9, 2008
For immediate release
The Federal Reserve acknowledges the considerable efforts of Citigroup Inc. and Wells Fargo & Company to reach an accord regarding the acquisition of Wachovia Corporation.
While no agreement between Wells Fargo and Citigroup was reached, the two parties have indicated that they will no longer seek injunctive relief to prevent a transaction.
The Federal Reserve will immediately begin consideration of the filings submitted by Wells Fargo for approval to acquire Wachovia Corporation.
So, here it is. We are done with the legal games and it would seem the decision is up to the Fed. The way I read it, the Fed is going to decide between either proposal, not decide how to break up Wachovia.
If that is the case, then Wells Fargo has to win because their deal involves no FDIC involvement. Simple. That, and it is a far better deal for shareholders.
Disclosure (“none” means no position):Long WFC, C
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