Reports: Citigroup May Seek Merger or Sale
November 21st, 2008 By: Rich Miller
CNBC and the Wall Street Journal are reporting that Citigroup (C) may seek a merger, sell assets or even consider an outright sale of the company. The reports follow a two-day selloff that has seen shares of the huge banking company slide to less than $5 a share.
The Wall Street Journal has details on behind the scenes activity at Citigroup as the bank’s leadership shifts into crisis control mode:
Citigroup’s board of directors is scheduled to have a formal meeting Friday to discuss the options, according to people familiar with the situation. Directors also have been talking by phone about what could be done to reverse the stock’s slide. Top executives were locked in meetings Thursday to hash out a stabilization strategy. Chief Executive Vikram Pandit scheduled a conference call for 8 a.m. Friday to discuss the situation with senior managers.
Obviously more to come on this story. Beyond the significance of Citigroup to the markets and credit system, the company is a major data center builder, having just opened a $450 million facility near Austin, Texas.