Citi blasts Wachovia-Wells Fargo deal
Citigroup labels Wells Fargo's conduct as "tortious interference" and indicates it may sue.
Citigroup Inc. said that Wells Fargo Corp.’s agreement to purchase Wachovia. Corp. is in “clear breach” of an exclusivity agreement that it had with Wachovia on Sept. 29.
New York-based Citigroup said that Wells Fargo’s conduct constitutes “tortious interference” with the agreement.
Citi said the agreement provides that Charlotte, N.C.-based 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.
Citi also said it has been providing liquidity support to Wachovia Bank since Monday’s acquisition announcement.
Additionally, Citi said its 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.”
Learn more about reprints and licensing for this article.
