On Saturday, Justice Charles Ramos of New York State's Supreme Court temporarily blocked Wells Fargo's planned purchase of the Charlotte, N.C.-based Wachovia.
Early last week, Citigroup announced it would acquire Wachovia's banking operations for $2.16 billion. Citigroup's deal needed the help of the Federal Deposit Insurance Corp., which had agreed to assume most of the risk of Wachovia's loan portfolio.
But on Friday, Wells Fargo announced it would purchase all of Wachovia in a stock-for-stock deal totaling $15.1 billion, or $7 a share. The deal requires no federal assistance.
Meanwhile, the Wall Street Journal reports Federal Reserve officials were pushing for Citigroup and Wells Fargo to reach a compromise. The effort could result in carving up Wachovia between its two suitors, the Journal reports, citing people familiar with the situation.
Under a plan being discussed Sunday night, Citigroup and Wells Fargo would divide Wachovia's network of 3,346 branches along geographic lines, with Citigroup getting Wachovia's branches in the Northeast and mid-Atlantic regions and Wells Fargo taking those in the Southeast and California. Wells Fargo also would take over Wachovia's asset-management and brokerage units, the Journal reports.
The plans being discussed Sunday night don't involve either Citigroup or Wells Fargo receiving financial assistance from the U.S. government, according to the Journal.
The talks ended late Sunday with no resolution, but were expected to resume Monday morning.
