Citi Bows Out of Wachovia Deal, May Sue

Citigroup announced that the company will not pursue a planned merger with Wachovia. Citi intended to take over the failed bank, but the deal fell through when Wells Fargo came in with a better offer.

Citi tried to stop the Wells Fargo deal with legal action, and then the three banks negotiated a possible solution. Late today, Citi bowed out. Citi claims that they still have the right to bring a legal suit against Wells Fargo and Wachovia, and they intend to seek damages (or money).

Previous posts on this story:

• 9/29/08: Wachovia “Merges” with Citi
• 10/3/08: Wells Fargo & Citi Battle for Wachovia
• 10/5/08: Wachovia Battle Continues, Judge Stops Wells Fargo