OK, well, maybe not for free, but it seems asset sales from Citigroup Inc.'s (NYSE:C) bad bank have stalled like Primerica or are finding very little interest such as its
stake in Redecard. So is CEO Vikram Pandit (pictured) now looking to sell off those assets that companies
might actually want?
It seems so. Citigroup may now sell both its Japanese investment bank and brokerage together in order to raise more yen.
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Retail brokerage Nikko Cordial Securities Inc. was put up for sale this month, and it is expected to fetch about ¥300 billion ($3.1 billion),
according to Reuters. By throwing in Nikko Citigroup, the Japanese investment bank, Citigroup could push up the price. Rumored bidders include Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group.
Of course this doesn't completely fit into Pandit's strategy, but nor did the Smith Barney joint venture with Morgan Stanley, the extra bailout by the government and the U.S. possibly taking a
40% stake in Citigroup to help it rebound from $28 billion in losses over the past five quarters.
The problem is that Pandit is facing a situation similar
to the problem America International Group Inc.'s (NYSE:AIG) Edward Liddy is staring at, and all paths seem to lead to Washington.
As
Politico's Eamon Javers puts it, this week the Obama administration is trying "to pull off one of the trickiest [magic tricks]: the levitating bank" -- and insurance company, for that matter.
There's also the question that
DealBook raises of whether the government will press to replace Pandit:
Citigroup insiders insist that
Mr. Pandit, who inherited many of the problems at the company when he
became chief executive in late 2007, has the government's backing.
Analysts say it would be hard to find someone willing to take his job.
So will Citi sell those assets that are supposedly off the block? In this economy, if there are bidders with capital to dangle, then Citi will most likely dance for the money. Really, what choice does Pandit have?
- Maria Woehr
