Wells Fargo insists on taking over Wachovia
6/10/2008 16:19
United States banking giant Wells Fargo said yesterday it was confident
that it would complete the announced merger with troubled lender Wachovia,
despite a freezing of the purchase by a New York state judge's at the request of
Citigroup.
Wells Fargo said it has "a firm, binding merger agreement" with
Wachovia, and "nothing in the court's temporary order impacts our ability to
ultimately do that."
"That agreement represents a transaction that, in stark
contrast to Citigroup's proposal, provides significant and certain value to
Wachovia shareholders, keeps Wachovia intact, is better for all of Wachovia's
stakeholders including its employees, and does not demand financial support from
our government," said the San Francisco-based bank.
Wells Fargo issued a
surprise 15.1-billion-dollar purchase offer to the North Carolina-based Wachovia
last week, which is one of several major banks that suddenly seeks a
better-funded suitor as the nation's credit meltdown makes borrowing money all
but impossible.
Citigroup accused Wells Fargo of trying to cut off its
earlier 2.1-billion-dollar takeover offer of Wachovia's banking operations in a
deal with the assistance of the Federal Deposit Insurance Corporation.
A
trial judge in New York ruled late Saturday night that the Wells Fargo takeover
must be put on hold until he can hold a hearing on it.
Wachovia has
reportedly welcomed the Wells Fargo offer as a far better deal for its
shareholders.
Wells Fargo is currently the nation's fifth-largest bank, with
US$609 billion in assets. If it gains control of Wachovia, it says it will
become the biggest bank in the nation.
Xinhua
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