Citigroup fears break-up

30 April 2007

Activist hedge funds may target Citigroup fear the financial services company's top brass.

The Financial Times reports senior executives at the firm are set to improve shareholder relations in a bid to promote the value of keeping the firm's units together.

Any possible hedge move on Citi would aim to break up the group.
However, the possible price tag of $260 billion could be enough to put off any interested hedge fund move.
Friday also saw Citi's Asian business boosted by the acquisition of Nikko Cordial. The group paid a total of $7.7 billion for the majority shareholder position with over 60 per cent of the firm.

Charles Prince, chairman and chief executive Officer of Citi, said: "The successful completion of the tender underscores our focus on seizing opportunities to grow internationally both organically and through targeted acquisitions.
"The combination of Nikko's local expertise, deep talent pool, strong brand, and extensive countrywide distribution network with Citi's global reach and innovative products and services will benefit our clients and help drive future growth of both franchises."

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