10/10/2008

Citigroup walked away from its fight to buy Wachovia, clearing the way for rival Wells Fargo to acquire the sixth-largest lender in the U.S., transforming Wells Fargo from a regional player focused on the West Coast to a national retail-banking powerhouse. Citi said it will no longer seek injunctive relief to block Wells Fargo but will pursue a $60 billion claim against Wells Fargo and Wachovia for breaching an agreement that gave it the exclusive right to negotiate with Wachovia. With Citi bowing out, Wells Fargo looks set to acquire Wachovia in an $11.7 billion all-share deal.

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