Wow, Wells Fargo just swooped in and bought Wachovia right out from under Citi’s smug little nose. Vikram Pandit, CEO of Citigroup, was just bitchslapped back to the stone age with this one.
On Monday all the news was buzzing that Citigroup got failing Wachovia bank at a bargain basement price of $1 per share. Vikram Pandit and the ‘Citi that never sleeps‘ looked like the sultans of dealmaking after they pulled this one out of nowhere.
But alas, the news was reported too soon as it turns out Wachovia was still discussing a potential sale to Wells Fargo. And that potential sale was a killer. It was then announced today that Wells Fargo and Wachovia agreed on a deal that would result in Wells paying $7 a share and not needing any help from the government and the FDIC. Citi is flipping their shit right now and talking about suing reporters that break news on the deal.
We’re not sure yet how Citi got this one stolen away from it so long after we all thought it was a done deal, but someone should keep an eye on those guys to make sure they are taking this news well. You know how sensitive everyone’s egos are these days.
I don’t even there exists an adjective to describe how epic a burn this is for Citi. This is just like one of those Wild West stagecoach robberies (which ironically is Wells Fargo’s logo).
Reports are even surfacing now that Bob ‘Man of’ Steel, CEO of Wachovia, even met with Vikram Pandit of Citi just yesterday! And he didn’t care to mention that Wachovia was in final talks with Wells Fargo on closing a deal. Incredible.
NYT: Wells Fargo In Deal To Buy All Of Wachovia, October 3, 2008