Sure, there is that whole exclusivity thing, and Wells Fargo's lawyers are "looking over the various papers," but, damnit, Citi, why not just outbid them too? Call it, a hedge. Call it, a two pronged attack. Call it, the second front. Front one, lots of lawyers paid lots of money to enforce what was probably a non-binding agreement. Front two, throw in a higher bid.
Of course, Wells is just playing dumb. "What bid? We didn't know Citi was bidding." Well, ok, it wasn't that blatant. It was more like:
"We're not aware of any merger agreement that has been consummated at the time. And as far as other issues, I haven't seen anything in terms of issues that Citi has or doesn't have. And we feel very confident that this transaction has been done appropriately."
For being the Chairman of a publicly held firm he sure does seem poorly informed.
To add insult to injury, Citi has been "Citi also said it has been providing liquidity support to Wachovia Bank since its announcement Monday." Hah. Ouch.
Rumor: Citi officials are poised to claim "We never wanted Wachovia anyhow, we just wanted to make it expensive for Wells," if they don't win the deal.
Citi challenges Wells-Wachovia deal [Easy Bay Business Times]
Also: Skadden/DPW v. S&C: Boom Goes The Dynamite [Above The Law]
Posted by guest , Oct 03, 2008 4:28PM
haha!
Posted by guest , Oct 03, 2008 4:30PM
too long, didn't outbid
Posted by guest , Oct 03, 2008 4:54PM
I didn't know where the "bbom goes the Dynamite" came from, so I googled it.
http://www.spike.com/video/boom-goes-dynamite/2669019
Posted by guest , Oct 03, 2008 5:02PM
Jamie would never let these fuckers get away with this.
Do a hostile on Wells Fargo Vik! Borrow all necessary funds from the discount window. Show those mother fuckers who the Wall Street's real BIG VIK is !
Posted by guest , Oct 03, 2008 5:07PM
Citi's position is utterly ridiculous. They completely took advantage of the situation, trying to get WB assets and in the meanwhile screwing the shareholders and taxpayers (with that cheap insurance on the WB portfolio).
If Vikram wants to own Wachovia, he should just man up and make a counteroffer.
The exclusivity agreement should be voided for unconscionability. Or, if not, the WB board certainly has a fiduciary duty to shareholders that they shouldn't be able to contract away in the middle of the night on a Sunday under pressure from the Federal government.
Posted by Anal_yst , Oct 03, 2008 5:23PM
@ 5
Unconscionability or not, then its more a case of breach of fidicuary duty by the board (and/or management) and not Citi's responsibility (/problem), no?
Posted by guest , Oct 03, 2008 5:26PM
5: Screw that. If it goes that way, next time the potential suitor will say, "Up yours, insolvency-boy. Have fun going broke and watching me buy your crumbs at the sale." It was this deal or be seized by the Feds. You're damn right that's pressure, but it would have been there with or without the Vik coming in to save the day.
Posted by diablo , Oct 03, 2008 6:18PM
WB has friends in high places, get it Vik?
Now Citi can't benefit from this IRS rule change (eff. 10/1/08).
"This new rule apparently allows Wells Fargo to accelerate the use of Wachovia's huge write-downs as an offset to their own income, saving Wells Fargo a substantial amount in taxes over the next several years."
http://calculatedrisk.blogspot.com/2008/10/irs-tax-change-helps-wells-fargo.html
Posted by guest , Oct 03, 2008 6:37PM
Boom Goes The Dynamite was also from this week's Family Guy. I higly suggest you check that out on Hulu.
Posted by guest , Oct 03, 2008 7:08PM
Didn't Texaco get sued for something like this, lost, went bankrupt, etc.? Penzoil? Getty? Anyone remember, it was before my time.
Posted by guest , Oct 03, 2008 7:43PM
@8 excellent site.
Thank you.
SPODE
Posted by bmwstox , Oct 03, 2008 9:21PM
Citi can go straight to hell. Citi has some nerve, they try to buy WB for pennies on the dollar using TAXPAYER money. Scum bags got caught and Main Street has had enough of Citi-scams.
Posted by guest , Oct 04, 2008 12:45AM
@12
Go fuck yourself. That was a deal of a lifetime, after JPM's purchase of WM.
You're a hater. You must have been bitch-slapped by Pandit in the past.
Posted by guest , Oct 04, 2008 2:28PM
Go to hell Count Dracula Pundit! Leave your frugality in India.
Shitty Group is buying Wacko bank for what 2 bln while Wells Far offers 15 billion?
LET THE SHAREHOLDERS DECIDE!!!!!
Posted by guest , Oct 04, 2008 2:28PM
Go to hell Count Dracula Pundit! Leave your frugality in India.
Shitty Group is buying Wacko bank for what 2 bln while Wells Far offers 15 billion?
LET THE SHAREHOLDERS DECIDE!!!!!
Posted by guest , Oct 05, 2008 1:23AM
JUDGE ORDERS WB TO ONLY NEGOTIATE WITH C
...for now