Citi Agrees To Disagree with Wells Fargo

Citi and Wells Fargo broke off negotiations over Wachovia, and Citi withdrew its bid for the company (WSJ1, WSJ2, FT). Now that Citi has withdrawn, Wells Fargo intends to complete its acquisition of Wachovia by year-end. It appears that Citi intends to pursue its $60 bln lawsuit against Wells Fargo. Negotiations between the two companies broke down over questions of how to divide geographic assets of Wachovia. Wells Fargo will have to raise $20 bln to fund the deal.