Citigroup, Wells Fargo square off in a winner takes Wachovia duel

"Any such agreement between Wachovia and Wells Fargo is illegal," said Vikram Pandit, chairman, Citigroup. "We continue to vigorously pursue Citigroup's interest and rights in completing this transaction."

Brushing off Citigroup's threats of legal action, Wells Fargo chairman Richard Kovacevich said, "We're confident that this deal goes through."

"The taxpayer doesn't pay a penny," he said, as Well Fargo's offer does not depend on any financial assistance from the Federal Deposit Insurance Corp (FDIC) or any other government agency.

"We get sued all the time and many times the suits are meritless," Kovacvich said, adding that the bank's lawyers are looking into the matter.

According to Kovcevich, no merger agreement had been consummated between Citgroup and Wachovia at the time Wells Fargo had announced its offer. "We feel very confident that this transaction (between Wells Fargo and Wachovia) has been done appropriately and will continue and be consummated. We think that this deal is solid," he said.

The top executive of San Francisco-based bank said Well Fargo's offer reflects the true value of Wachovia. "It (the offer) provides superior value compared to the previous offer (of Citigroup) to acquire only the banking operations of the company," Kovacevich said. "Wachovia shareholders will have a meaningful opportunity to participate in the growth and success of a combined Wachovia-Wells Fargo that will be one of the world's great financial services companies."