24/7 Wall St.
09-26-2008, 04:00 PM
24/7 Wall St. Daily News
http://www.247wallst.com/images/2008/09/26/citigroup_logo_3.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/26/citigroup_logo_3.gif)http://www.247wallst.com/images/2008/09/26/wachovia_logo.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/26/wachovia_logo.gif)The rumor mill and the deal-making mill might not be dead. The New York Times' DealBook (http://dealbook.blogs.nytimes.com/2008/09/26/wachovia-begins-early-deal-talks-with-citi/) noted that Citigroup Inc. (NYSE:C) and Wachovia Corporation (NYSE: WB) were in early merger talks. Citi shares closed up 3.8% at $20.15 in a late-day run-up after being down sharply earlier. Wachovia shares closed down 27% at $10.00 on fears that it would face credit troubles similar to WaMu. These mergers have so far not been great for shareholders at competing banks. Wachovia's stock is actually down about 3% in after-hours trading. Where that ultimately goes is anyone's guess. Until there is a confirmation from one or both companies, we are treating this more as rumor than as fact.
As we noted, Citigroup's financial supermarket model is now being vindicated (http://www.247wallst.com/2008/09/sick-twist-of-f.html) based upon the financial consolidation. Too bad it executed that strategy poorly.
Jon C. Ogg
September 26, 2008
http://feeds.feedburner.com/~f/typepad/RyNm?i=QAXeL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=QAXeL) http://feeds.feedburner.com/~f/typepad/RyNm?i=EimEL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=EimEL) http://feeds.feedburner.com/~f/typepad/RyNm?i=KGHKl</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=KGHKl)
complete story here... (http://www.247wallst.com/2008/09/citi-chovia-or.html)
http://www.247wallst.com/images/2008/09/26/citigroup_logo_3.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/26/citigroup_logo_3.gif)http://www.247wallst.com/images/2008/09/26/wachovia_logo.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/26/wachovia_logo.gif)The rumor mill and the deal-making mill might not be dead. The New York Times' DealBook (http://dealbook.blogs.nytimes.com/2008/09/26/wachovia-begins-early-deal-talks-with-citi/) noted that Citigroup Inc. (NYSE:C) and Wachovia Corporation (NYSE: WB) were in early merger talks. Citi shares closed up 3.8% at $20.15 in a late-day run-up after being down sharply earlier. Wachovia shares closed down 27% at $10.00 on fears that it would face credit troubles similar to WaMu. These mergers have so far not been great for shareholders at competing banks. Wachovia's stock is actually down about 3% in after-hours trading. Where that ultimately goes is anyone's guess. Until there is a confirmation from one or both companies, we are treating this more as rumor than as fact.
As we noted, Citigroup's financial supermarket model is now being vindicated (http://www.247wallst.com/2008/09/sick-twist-of-f.html) based upon the financial consolidation. Too bad it executed that strategy poorly.
Jon C. Ogg
September 26, 2008
http://feeds.feedburner.com/~f/typepad/RyNm?i=QAXeL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=QAXeL) http://feeds.feedburner.com/~f/typepad/RyNm?i=EimEL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=EimEL) http://feeds.feedburner.com/~f/typepad/RyNm?i=KGHKl</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=KGHKl)
complete story here... (http://www.247wallst.com/2008/09/citi-chovia-or.html)