Wachovia Corp sale sparks bidding war

In the US, a bidding war is taking place over Wachovia Corp.

Citigroup and Wells Fargo are locked in battle over the Wachovia sale, but it is unclear whether they would pay much for a share of the mortgage lender.

Wachovia shares closed Friday at US$10.

The US government, led by the Federal ...

...and the Treasury Department, has told Citigroup and Wells Fargo that it won't guarantee Wachovia's assets, as it did for Bear Stearns during the takeover by JP Morgan.

Wachovia’s decline came about due to a US$122 billion portfolio of option adjustable-rate mortgages it largely inherited when it bought California lender Golden West Financial Corp in 2006.

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