Wells Fargo tables $15bn Wachovia bid
Friday, 3 October 2008 16:48Wells Fargo has tabled a $15.1 billion bid for troubled banking rival Wachovia in an attempt to outflank Citigroup and its government-backed rescue plan.
The proposed acquisition immediately ran into opposition from Citi, which claimed exclusive rights for Wachovia after it announced a takeover deal on Monday for the banking operations of the North Carolina-based firm.
Wachovia and Wells Fargo said earlier that they had 'signed a definitive agreement for the merger of the two companies' without government assistance.
The proposed deal is the latest move in the great redrawing of the US financial landscape as commercial and investment banks go bust or seek takeovers because of losses linked to the sub-prime housing market.
The planned acquisition by San Francisco-based Wells Fargo would give it the biggest network of branches in the US.
The deal covers 'all of Wachovia's banking operations in a whole company transaction requiring no financial assistance from the Federal Deposit Insurance Corporation or any other government agency,' the statement said.
If the deal were to go through, Wells Fargo would have 10,761 branches, 4,618 more than Bank of America, which currently has the most branches in the US.
