Wells Fargo & Co. appears set to proceed with its acquisition of Wachovia Corp. after Citigroup Inc. bowed out of negotiations with the banks.

The two sides had tried to come to an agreement to split up Wachovia after conflict erupted when Wells Fargo trumped Citigroup's government-backed bid for the banking operations of the Charlotte, N.C.-based company. Wells Fargo - which will buy Wachovia intact without government support - said it expects to complete the $11.38 billion deal by the end of the year.

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