Wachovia Corp is in talks with potential buyers, all rivals, to be taken over following a fall of 27% in the U.S. bank’s shares on Friday. The sudden fall was due to concerns about its portfolio of poisonous or toxic mortgage assets.
According to The New York Times the two main suitors are locked in a bidding war for a possible takeover of Wachovia, citing people involved in the talks.
The U.S. Federal Reserve and Treasury Department are also involved in the marathon talks according to the newspaper.
A treasury department spokesperson declined to comment on any specifics of the discussions regarding Wachovia but said “we are in regular contact with market participants.”
Wachovia was the sixth-largest U.S. bank by assets prior to this crisis.