Citigroup executives mull sale of assets: report

Citigroup executives mull sale of assets: report
PTI
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First Published: Fri, Nov 21 2008. 01 15 PM IST
Updated: Fri, Nov 21 2008. 01 15 PM IST
New York: Amid plunging stock price, executives at troubled banking firm Citigroup are mulling the possibility of auctioning off all or parts of the financial giant, says a media report.
Quoting people familiar with the matter, The Wall Street Journal said: “Executives at Citigroup Inc, faced with a plunging stock price, began weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright.”
WSJ further said that “the internal discussions are at a preliminary stage and don’t signal that Citigroup’s board and management are backing down from their insistence that the New York company has ample capital, funding and strategic direction.”
“Citigroup officials have decided they need to reckon with a range of scenarios that were unthinkable only weeks ago,” the newspaper said.
Investors are dumping financial sector stocks on concerns over global woes. JP Morgan Chase shares slid 18 per cent, while Bank of America fell 14% and Citigroup declined 26.41%, or $1.69, to $4.71.
Meanwhile, another daily The Australian quoting people familiar with the situation reported that the board of directors of Citigroup are scheduled to have a formal meeting tomorrow (AEDT) to discuss the options.
The Australian, added that the sell-off in Citigroup shares has led executives to start laying out possible contingency plans.
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First Published: Fri, Nov 21 2008. 01 15 PM IST
More Topics: Citigroup | Financial Crisis | US | Economy | Assets |