UPDATE 1-Wachovia talks hit snag over division of assets-WSJ
(Adds details)
- Oct 9 (Reuters) - Talks between Citigroup Inc, Wells Fargo & Co and the
U.S. government over a way to divide Wachovia Corp between its two suitors were
hung up on several key issues Wednesday, The Wall Street Journal said citing
people familiar with the situation.
After looking deeper into Wachovia's books, Citigroup and Wells Fargo have
been surprised by the concentration of assets they regard as low-quality, the
paper said, citing the people.
Both banks are worried that buying even part of Wachovia could saddle them
with steeper losses than previously expected, the paper said.
The two would-be buyers have also been sparring over the computer system
used in Wachovia's retail branches, one person familiar with the discussions
told the paper.
Citigroup wants full control of Wachovia's system when the deal closes,
while Wells Fargo wants the system to be shared temporarily, the paper said.
People close to the discussions told the paper that they remain hopeful that
a deal can be reached.
A Citigroup spokesperson declined to comment.
Wells Fargo did not immediately return calls seeking comment.
(Reporting by Ajay Kamalakaran in Bangalore; Editing by Mike Nesbit)
Keywords: CITIGROUP/WELLSFARGO
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