The market is tanking today, and the Wachovia battle isn’t helping. Citigroup and Wells Fargo are still fighting to own Wachovia. Citigroup filed a $60 billion lawsuit, which is, I think, a bit much.
Citi also cites the $225 million “golden parachutes” Wachovia senior executives would receive under the Wells deal. While I’m not usually a fan of golden parachutes, if I were a Wachovia shareholder and the board spurned a $1/share deal for a $7/share deal, I’d say that’s the way to go. As a taxpayer, any solution that doesn’t involve my tax dollars is a no-brainer, too.
If the fighting keeps up, though, there might not be anything left of Wachovia worth buying.
Note that all sides have agreed to a “standstill of lawsuits”, at least until Wednesday.
I really hope they don’t break Wachovia up as they’re talking about.
The Wells deal would keep the company in tact. That seems a better solution to me. Although announcing a deal and then walking away from it a few days later doesn’t sound good. I’m torn; but, leaving the company in tact, no taxpayer liability, and better preservation of share holder equity would seem to be best for everyone–except citi