Judge Blocks Wachovia Sale To Wells Fargo

Wachovia branch bank, Charlotte, North Carolina, photo AP (file)

The fight over control of Wachovia has intensified now that a New York judge has temporarily agreed to block the sale of the bank to Wells Fargo.

A Wachovia spokeswoman says the company feels the deal with Wells Fargo was not just proper and valid, but also "in the best interest of shareholders, employees and the American taxpayers."

On Monday, Citigroup announced a deal brokered with the help of the federal government to buy Wachovia's banking operations for more than $2 billion dollars. By Friday, Wells Fargo said it was buying Wachovia for almost $15 billion dollars.

Wachovia says Citigroup is free to make a better deal. Citigroup says it already has an exclusivity agreement that bars Wachovia from talking with other potential buyers.

The government says it stands behind its previously announced agreement with Citigroup.
  • CBSNews

Comments