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The fight over control of Wachovia intensified
Saturday, as a judge temporarily agreed to block the sale of the
bank to Wells Fargo, Citigroup announced in a news release.


      State Supreme Court Justice Charles Ramos issued the order
blocking the sale of Wachovia Corp., which Wells Fargo & Co. had
agreed to purchase in a $14.8 billion deal.


      Citigroup Inc. accused Wells Fargo of trying to cut off its
earlier takeover offer of Wachovia's banking operations for $2.1
billion in a deal struck with the assistance of the Federal Deposit
Insurance Corp. On Friday, four days after that deal was struck,
Wells Fargo said it was buying Wachovia.


      The litigation pits two of the largest remaining financial
institutions against one another as the ongoing credit crisis leads
the federal government to arrange marriages and sales among banking
entities.


      Wells Fargo and Citigroup did not respond to messages left late
Saturday seeking comment about the temporary order blocking the
sale.

      Wachovia spokeswoman Christy Phillips-Brown said in a statement
the company believes its agreement with Wells Fargo is "proper,
valid and ... in the best interest of shareholders, employees and
the American taxpayers."


      She said Citigroup is free to make a better offer to Wachovia
under that agreement.


      The FDIC said Friday that it "stands behind its previously
announced agreement with Citigroup." It also said it would review
all proposals and work with regulators of all three institutions to
resolve the tug-of-war.


      Citigroup says it has an exclusivity agreement that bars
Wachovia from talking with other potential buyers. Its shares fell
sharply after the surprise announcement of the Wells Fargo-Wachovia
agreement.

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Business and Economic News

The fight over control of Wachovia intensified
Saturday, as a judge temporarily agreed to block the sale of the bank to Wells Fargo, Citigroup announced in a news release.

Wells Fargo Reports 11 Percent Drop In Quarterly E

Citi: Wells Fargo blocked from buying Wachovia

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