Wachovia says it will press ahead with Wells deal - KWWL - Eastern Iowa Breaking News, Weather, Closings

Wachovia says it will press ahead with Wells deal


NEW YORK (AP) -- A federal judge has vacated a New York state judge's ruling temporarily blocking the sale of Wachovia to Wells Fargo. But the judge has scheduled another hearing for Tuesday so that Citigroup can respond.

Wachovia is at the center of a fight between Wells Fargo and Citigroup over who will buy the beleaguered bank.

Wachovia wants to move ahead with its deal to sell itself to Wells Fargo for $14.8 billion.

Citigroup, which had earlier agreed to take over Wachovia's banking operations for $2.1 billion, claims it has an exclusivity agreement that bars Wachovia from talking with other potential buyers. Citigroup's deal was struck with the assistance of the Federal Deposit Insurance Corporation.

Wachovia wants the U.S. District judge to declare that the Wachovia-Wells Fargo agreement "is valid, proper and not prohibited by a letter agreement between Wachovia and Citigroup."

Online Producer: Mike Verlo

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