Wachovia wrangling - snag?

Wells Fargo, Citigroup, Wachovia negotiations continue

Excerpt:

However, The Wall Street Journal, is reporting that the negotiations have hit a snag. The newspaper cites unnamed sources familiar with the negotiations as saying both New York-based Citi (NYSE:C) and San Francisco-based Wells (NYSE:WFC) are worried that Wachovia’s bad mortgage loans could lead to steeper losses than initially expected.

...

In some ways, it is interesting to note which parties aren’t involved. Wachovia, which on Friday accepted a $15.1 billion offer from Wells, is not at the table. Nor is the Federal Deposit Insurance Corp. directly involved at this time.

Citi, walk away from Wachovia!

Excerpt:

Call me crazy. But isn't the solution simple?

Citigroup should walk away -- even if it has to be paid to do so -- and go find something else to buy.

Wells Fargo (WFC, Fortune 500) wants to buy all of Wachovia for about $15.7 billion, or $7 a share. Citigroup (C, Fortune 500) announced four days before Wells swooped in with its bid that it planned to buy just the banking assets of Wachovia for about $2.2 billion, or $1 a share.

Do the math. $7 or $1? Which is the better deal for Wachovia shareholders? Hmm.

Comment: Maybe they both should walk away?