The Japanese broker has bailed out the US bank by changing the agreement which saw
Citigroup offering its shares for the 32 per cent in Nikko Cordial it did not own.
Nikko Cordial worried that the $4.6 billion deal would not be sufficient to stave off the negative effects of the sub-prime crash.
Previously, it was agreed that Nikko shareholders would receive $15.32 of Citigroup stock per share from January 15th, but the clause stipulating that Nikko shareholders would lose out if Citigroup's share price was below $37 over three days was deemed unacceptable.
After Citigroup's stock price fell sharply last month following the sub-prime crash, Citigroup's stock closed at $35.9 and this led to the new arrangement.
"The revised arrangement was agreed to by Citi to ensure the share exchange transaction proceeds smoothly in light of changes in global financial markets," Citigroup said in a statement.
Nikko has now lowered a stipulation for termination of the deal from $22 from $26, although further talks will confirm an arrangement by January 21st 2008.