Mecklenburg judge issues order against Citi

CHARLOTTE -- A Mecklenburg County Superior Court Judge on Sunday granted a temporary restraining order barring Citigroup from enforcing an exclusivity agreement that barred Wachovia from entering a merger agreement with another suitor.

Two Wachovia shareholders - Mary Louise Guttmann and former Wachovia chief executive Bud Baker - requested the temporary restraining order from Judge Robert Johnston. The order is the latest twist in a battle for Wachovia after Wells Fargo upended a Wachovia-Citi merger with a competing offer.

In their motion, Guttmann and Baker say Citi is taking steps "apparently designed" to cause the Wachovia-Wells merger to fail and the collapse of Wachovia's market value by saying Wells interfered with Citi's exclusivity agreement. Under the order, Citigroup is to appear at a hearing at the Mecklenburg County Courthouse on Thursday.

"We are delighted that Judge Robert Johnston has agreed that Citigroup should be prohibited from attempting to enforce what it has incorrectly claimed were lawful exclusivity provisions in the letter agreement between Wachovia and Citigroup," Guttmann and Baker said in a statement. "We are especially pleased that Judge Johnston directed Citigroup to take no action attempting to utilize those provisions, or to make any public statement that casts doubt on the validity of the Wachovia/Wells Fargo merger agreement."

The pair added that they look forward to the opportunity of voting on the Wachovia/Wells Fargo merger.