RHRInvestor

Citi Examines Its Carrots and Sticks

Citi did not have a completed deal and the exclusivity "agreement" apparently expired by its terms on Monday 10/6. Even if you assume that Citi and Wachovia would have signed a definitive deal agreement before Monday, the deal that would have been signed would have required shareholder approval, which ultimately would likely not have been received in the face of a competing Wells offer to buy WB for $7. So the harm to Citi in what Wells and Wachovia have agreed? Not much. A few days of legal expenses and distraction, probably offset by the future legal and other expenses that Citi avoids by having their deal killed early rather than later.