Washington: A US appeals court has struck down an earlier injunction order on a proposed merger between banks Wells Fargo Co and Wachovia, Wells Fargo announced in a statement.

"The appellate court has entered an order vacating Judge Ramos's order of yesterday. We are pleased that the unfounded order entered yesterday has been vacated," the statement said last night.

"Wells Fargo will continue working toward the completion of its firm, binding merger agreement with Wachovia Corporation."

The new court order follows an announcement by US banking giant Citigroup Saturday that it had been granted an injunction by a New York state court, extending its exclusive rights to negotiate a merger with Wachovia after Wells Fargo muscled in on the talks last week and announced a takeover of its own.

The battle for Wachovia is part of the great redrawing of the US financial landscape as commercial and investment banks go bust or seek takeovers because of losses linked to the subprime housing market.

The planned acquisition by Wells Fargo, which traces its roots to the Wild West and the Gold Rush of the 19th century, would give it the biggest network of branches in the United States.

If the deal were to go through, Wells Fargo would have 10,761 branches, 4,618 more than Bank of America Corp, which currently has the most branches.

It has offered USD 15.1 billions in an all-stock deal to buy all of Wachovia and it stressed that its proposal did not have any government involvement or taxpayer risk.
Source : PTI