Wells Fargo wins takeover of Wachovia

13 October 2008

Natalie Holt

Wells Fargo has come out on top in the battle for US bank Wachovia as the Federal Reserve agrees its $12bn takeover.

The agreement from the US central bank lays to rest Citigroup’s prior claim to Wachovia, which was the first company to bid for the troubled US bank.

Citi’s first reaction to Wells Fargo’s original rival bid of $15.1bn was to threaten legal action.

Citi’s bid would have been aided by the US government and extended to Wachovia’s banking operations and $42bn of the bank’s £312bn losses.

But five days after the Citi deal was offered, Wells Fargo countered with its own offer which covered the entire bank.

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