Citigroup demands Wachovia call off new deal with Wells Fargo

In an abrupt change of course, Wachovia Corp. said today it agreed to be acquired by Wells Fargo & Co. in a $15.1 billion all-stock deal, wiping out Wachovia's previous plan to sell its banking operations to rival suitor Citigroup Inc. Citigroup executives, blindsided by the agreement, are considering filing a lawsuit against the two banks and also may sweeten their bid for Wachovia, according to a Wall Street Journal report. A key difference is that the Wachovia deal will be done without government assistance, while the Citigroup deal would have been done with the help of the Federal Deposit Insurance Corp. "This deal enables us to keep Wachovia intact and preserve the value of an integrated company, without government support," Robert Steel, Wachovia's president and chief executive, said in a statement. Citigroup is accusing Wachovia of breaching the "exclusivity agreement" between the two banks. The New York banking giant, which hoped to gain access to Wachovia's deep well of deposits, is considering its legal options, including suing Wachovia for breach of the exclusivity pact and suing Wells Fargo for tortuous interference. The Wachovia-Wells deal, announced Friday, comes in a turbulent time for banks and financial firms as they grapple with the ongoing credit crisis, which led to the recent bankruptcy of Lehman Brothers Holdings Inc. and the failure of Washington Mutual Inc.

Landrieu, Kennedy to hold first debate Monday; questions wanted for second

U.S. Sen. Mary Landrieu and state Treasurer John Kennedy will have their first debate Monday afternoon before the Press Club of Baton Rouge. Landrieu, the incumbent Democrat, will face Kennedy, the Republican challenger, in the forum, which will be held from noon to 1:15 p.m. at De La Ronde Hall on Third Street. Jim Engster, general manager of the Louisiana Network, will serve as moderator. Only reporters will be allowed to ask questions. The public will have a chance to ask questions at the second Senate debate, scheduled for Oct. 12. The Council for A Better Louisiana and Louisiana Public Broadcasting are sponsoring the debate, which will be held at 7 p.m. on the LSU campus and broadcast live on LPB stations across the state. To submit a question, go to lpb.org and click on "Senate Debate 2008.”

LaPolitics by John Maginnis: Safe bailout votes

With three-quarters of the U.S. Senate voting for a $850 billion bailout and tax-break bill, Sen. Mary Landrieu cast a safe vote against it, same as Sen. David Vitter, an outspoken critic of the measure. That takes the bailout plan out of the Senate race, which could have been turned upside down by the radioactive issue, given the intense voter disapproval of the bill that the House will vote on today. Three Louisiana congressmen facing substantial election challenges—Democrats Bill Jefferson and Don Cazayoux and Republican Steve Scalise—remain opposed to the bill after the House voted down a less expensive version by 12 votes Monday. Scalise has been the most critical of the bill. But GOP Congressmen Rodney Alexander and Charles Boustany, facing less stiff election challenges, are rethinking their no votes from Monday.

—Former Congressman Cleo Fields has endorsed Republican challenger Jeff Hughes against Justice Kitty Kimball, putting one more twist into a turbulent election. Fields is said to hold against Kimball the 2007 opinion she wrote that disqualified him for re-election to the state Senate based on the term-limits law.

—Former Rep. Gil Pinac, D-Crowley, says he is "definitely running" in next spring's special election to replace former Public Service Commissioner Dale Sittig, who was recently appointed director of the Louisiana Offshore Oil Port. The election is expected to be called on April 4, the state's first election date of 2009. PSC District 4 covers 14 parishes in southwest and central Louisiana.

John Maginnis publishes LaPolitics Weekly at Lapolitics.com

Louisiana Family Forum makes changes to judicial voting guide

The Louisiana Family Forum has amended its judicial voting guide after two groups expressed concerns about affiliations claimed by appellate Judge Jeff Hughes, a candidate for the Louisiana Supreme Court. Under the "affiliation" category, Hughes listed the Louisiana Association of Business and Industry and Public Affairs Research Council of Louisiana. After the guide was released, representatives from LABI and PAR expressed concerns, says Gene Mills, the forum’s executive director. "That term was broad and generic enough that it may construe 'association,'" Mills says. Along with making the changes to Hughes' responses, the family forum is also sending out a letter from his opponent, Supreme Court Justice Catherine "Kitty" Kimball. Kimball refused to answer the questions for the voter guide as part of a personal policy. "My consistent judicial philosophy, and one that I feel very strongly about, is that my personal opinion and judicial responsibility are separate and distinct," Kimball wrote in a letter to Mills. Kimball noted that her record on family and children's issues is clear, based on her rulings and activities outside the courtroom.—Timothy Boone

Ferro sells north Baton Rouge chemical plant

Ferro Corp. has sold its north Baton Rouge chemical plant as part of a $66 million deal with Novolyte Technologies. Novolyte, an affiliate of Arsenal Capital Management, purchased Ferro's fine chemicals business, which includes the West Irene Road plant and a facility in China. The two plants, which produce electrolytes used to make lithium batteries and solvents, have a combined total of 140 workers. Ferro says it sold the fine chemicals business in order to concentrate on areas such as particle engineering and glass science.

Former Fair Grounds owner buys O'Neal Lane shopping center

Bryan Krantz, the former president and owner of the Fair Grounds race track in New Orleans, has purchased a 5,000-square-foot shopping center at O'Neal Lane and Interstate 12 for nearly $1.8 million. Krantz and his family sold their interest in the track in 2004, and Krantz moved into real estate development. "Since things have slowed down in residential, we're starting to focus a little more on commercial projects," he says. Krantz says he was interested in the center because of its location and the mix of regional and national tenants. The center is home to HobbyTown, GameStop, Sports Clips and a check cashing business. There are no plans to make significant changes, because all of the tenants are under long-term leases. Krantz says he may make more investments in Baton Rouge.—Timothy Boone

Lagniappe Frame Shoppe and Gallery moving to Jefferson Highway

The Lagniappe Frame Shoppe and Gallery, which came up with the popular "fleur de tigre" logo, is moving to Jefferson Highway. Owners Greg and Stacey Uffman Blanchard recently purchased the French Market Café building at Jefferson and Bluebonnet Boulevard, which they plan to tear down and construct a 4,000- to 5,000-square-foot building. David Trusty, director of commercial real estate for Gully, Phelps & McKey Commercial Real Estate, helped broker the sale, which he says was slightly less than $300,000. Greg Blanchard says the couple hopes to open the new business in about a year. Lagniappe is currently on Florida Boulevard, between Sharp Road and McGehee Drive. A more visible location for the business was important in order to promote designs such as the "fleur de tigre,” which merges the fleur-de-lis with a purple-and-gold tiger, and the "fleur for the cure,” which incorporates a pink breast cancer ribbon. "Branding these items for the collegiate market is new for us," Blanchard says. "The design portion will be a bigger component of the new building"—Timothy Boone

New dates set for Richmond canvass trip

The Baton Rouge Area Chamber will make its canvass trip to Richmond, Va., from March 22-24. The trip had been scheduled for the last weekend of September, but was postponed because of Hurricane Gustav. 225 publisher Julio Melara, who is chairing the trip, says the date was selected because it didn't conflict with holidays, social events and the start of the Legislative session.

News roundup: Penn National projects $3 million earnings hit from hurricanes … New LSU basketball coach thinking big … Campaign flier contains major spelling mistake

Hurt by Gustav and Ike: Penn National Gaming, the parent company of Hollywood Casino Baton Rouge, has revised its third-quarter earnings projections, saying it expects hurricanes Gustav and Ike will be responsible for bringing in about $3 million less. The company had projected $178.6 million in third-quarter earnings before taxes; Penn National now is forecasting $146.3 million. Along with the hurricane disruptions, the casino company says it is impacted by the slumping economy and higher-than-expected lobbying expenses. … Johnson profiled by ESPN: New LSU men's basketball coach Trent Johnson told ESPN.com that he has lofty goals for the Tigers. "If we don't win at an elite level here then it's on me," Johnson says. "No excuses." The article says that players are "ecstatic" about Johnson, the first black permanent head coach at LSU and someone who has led two different programs to the Sweet 16. Read the profile here. … Whoops: An e-mail distributed by mayoral candidate Dan Kyle refers to the city-parish chief administrative officer Walter Monsour as "Walter Monsieur.” Kyle's newsletter to supporters and voters was distributed by the Republican Party of Louisiana. Kyle made the reference as part of a statement concerning Monsour's potential departure. "When Walter leaves the mayor must hire someone else to be mayor," Kyle says.