N.Y. judge blocks Wells Fargo deal for Wachovia, orders hearing

October 5, 8:39 AMBusiness ExaminerDarrell Proctor

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A New York judge has - at least temporarily - agreed to block the sale of Wachovia to Wells Fargo after a complaint from Citigroup, which thought it had an exclusive deal to buy the Charlotte, N.C.-based bank.

On Sept. 29, Citigroup announced a deal - backed and brokered with the help of the federal government - to buy Wachovia for more than $2 billion. At the end of the week, Wells Fargo said it had a deal to buy Wachovia for $15 billion.

Wachovia, of course, wanted the better deal. The deal with Wells Fargo was "in the best interest of shareholders, employees and the American taxpayers," said a Wells Fargo spokeswoman - noting Citi's deal included government - i.e., taxpayer - money, and its deal did not.

Citigroup immediately protested. Wachovia said Citigroup was free to make a better deal. And Wells Fargo said it was doing business the way business has always been done in takeover battles.

So now the deal is on hold. N.Y. Supreme Court Judge Charles Ramos will hold a hearing Friday to decide which of the two deals can move forward. And Wachovia customers continue to wait to see whose logo will be on their checks.