Citigroup Inc. may have scooped up Wachovia Corp., but it still looks like the bank is looking everywhere to scrounge up cash to cover the buyout.
The Wall Street Journal is reporting that Citigroup has put a Japanese call center up for sale and is also looking to put its Japanese asset management business up for a public offering.
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Part of Citi CEO Vikram Pandit's overall plan to shave $500 billion off
of Citi's balance sheet over the next
several years and shore up more capital apparently includes selling
Bellsystem24 Inc., which is expected to fetch about $2
billion, according to a report. That would just about cover its $2.2 billion purchase of Wachovia, but would still leave it on the hook for Wachovia's debt.
Along
with selling the call center, the report says Citigroup has also
appointed bankers to oversee the initial public
offering of part of Nikko Asset Management Co., its majority-owned
Japanese fund management business. The sale is being lead by Goldman, Sachs & Co.
and Citigroup's investment banking arm in Japan, Nikko Citigroup.
Potential bidders could include Kohlberg Kravis Roberts & Co.,
Permira
Advisers, Blackstone Group LP and Carlyle Group, according to the report.
However, there was no word on how large the offering might be.
So far Citigroup has raised about $50 billion since last November to cover losses.
According to Reuters, Citi said it would raise $10 billion in common equity and
slash its dividend to help finance the Wachovia purchase.
- Maria Woehr
