Citigroup thought they had a deal with Wachovia all tied up. Now the company says Wachovia is planning on breaching that deal in favor of a sweeter offer by Wells Fargo.

"Wachovia's agreement to a transaction with Wells Fargo is in clear breach of an exclusivity agreement between Citi and Wachovia," Citigroup said in a statement.

"Citi was negotiating in good faith and nearly completed the definitive agreements required to consummate the Citi/Wachovia transaction that was announced on Monday," they said. “Citi has demanded that Wachovia and Wells Fargo terminate and not proceed with any proposed transaction."

Earlier today Wachovia and Wells Fargo said in a statement that they "signed a definitive agreement for the merger of the two companies" without government assistance, the two firms said in a statement."

It looks the 15 billion stock swap offer from Wells Fargo may be in trouble.