Citigroup to proceed with Nikko takeover - Trading-Lab

Leth · #1 01-20-2008, 01:22 AM

Citigroup to proceed with Nikko takeover
January 18, 2008

Associated PressAll Associated Press news

TOKYO (AP) - Citigroup Inc. will proceed with its plan to absorb Nikko Cordial Corp., Japan's third-largest brokerage, in a share swap, both companies said Friday.

The deal for Citigroup to offer 0.602 of its own shares for each Nikko share was reached in November. Before the deal, Citigroup had owned 68 percent of Nikko.

Concern had arisen about the deal's consumation because of the recent plunge in Citigroup shares after it announced a massive write-down for unexpected subprime mortgage-related losses.

Citigroup stocks have been sinking after it reported a loss of nearly $10 billion (6.8 billion euros) for the fourth quarter earlier this week. It wrote down more than $18 billion (12.3 billion euros) from its portfolio of mortgage debt, and reserved more than $3 billion to prepare for borrowers missing payments on their loans.

Under the deal confirmed Friday, Citigroup will pay Nikko Cordial shareholders the equivalent of 1,700 yen ($15.9) of its stock for each Nikko share. The price is based on Citigroup's average price on the New York Stock Exchange from Jan. 15-17 and a foreign exchange rate set last year.

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#1 01-20-2008, 01:22 AM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	Citigroup to proceed with Nikko takeover Citigroup to proceed with Nikko takeover January 18, 2008 Associated PressAll Associated Press news TOKYO (AP) - Citigroup Inc. will proceed with its plan to absorb Nikko Cordial Corp., Japan's third-largest brokerage, in a share swap, both companies said Friday. The deal for Citigroup to offer 0.602 of its own shares for each Nikko share was reached in November. Before the deal, Citigroup had owned 68 percent of Nikko. Concern had arisen about the deal's consumation because of the recent plunge in Citigroup shares after it announced a massive write-down for unexpected subprime mortgage-related losses. Citigroup stocks have been sinking after it reported a loss of nearly $10 billion (6.8 billion euros) for the fourth quarter earlier this week. It wrote down more than $18 billion (12.3 billion euros) from its portfolio of mortgage debt, and reserved more than $3 billion to prepare for borrowers missing payments on their loans. Under the deal confirmed Friday, Citigroup will pay Nikko Cordial shareholders the equivalent of 1,700 yen ($15.9) of its stock for each Nikko share. The price is based on Citigroup's average price on the New York Stock Exchange from Jan. 15-17 and a foreign exchange rate set last year. __________________ Nothing is more difficult than the art of maneuvering for advantageous positions. - Sun-Tzu Trade with the trend, Ride winners, Cut losers, Keep bets small, Use Stops - Old School