SATURDAY NIGHT IN CONNECTICUT

Citigroup won a New York state court order late on Saturday that would have extended an agreement it had to negotiate exclusively with Wachovia. Citigroup lawyers met New York State Supreme Court Justice Charles Ramos in his home in Cornwall, Connecticut, with lawyers for the other two banks phoning in.

An appeals court on Sunday overturned that order, in part because the decision was not made in New York. Citigroup plans to appeal that decision.

Also on Sunday, Wachovia asked a federal judge for a temporary restraining order that would have prevented Citigroup from interfering with the Wells Fargo deal.

US District Court Judge John Koeltl denied the request, but said the court will hear on Tuesday whether or not the exclusivity agreement that Citigroup says prevented Wells Fargo from making the bid for Wachovia is enforceable.

Koeltl said Wells Fargo's argument appears to be valid. It is not likely he will preside over the hearing.

Wachovia said on Sunday that its agreement with Wells Fargo is valid and proper, and is best for shareholders, employees and US taxpayers. Wells Fargo said in a statement it has a binding merger agreement with Wachovia, and its deal, which keeps Wachovia intact, is better for all of Wachovia's stakeholders.

"We are confident that we will complete our announced merger with Wachovia," Wells Fargo said.

Wachovia spokeswoman Christy Phillips-Brown said early Sunday: "Citigroup is always free to make a superior offer to Wachovia."

One of the earliest effects of the $700 billion bailout legislation signed by US President George W. Bush last week could come in Wachovia's federal court case, which argues that a clause in the bill invalidates the exclusivity agreement signed with Citigroup.

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