Citigroup ‘considering sell-off’
Friday 21st November 2008, 11:29AM GMT.
The board of Citigroup is holding crisis talks today as the bank’s share price plunged further last night.
The bank may decide to break up or sell its entire business, the Wall Street Journal reported, as shares dived 26.41 per cent yesterday.
The newspaper said discussions are at a preliminary stage and the bank is still insisting it has plenty of capital, funding and strategic direction.
But Citigroup is considered to be more vulnerable than its peers and tumbling share prices may trigger a catastrophic loss of confidence.
Shares plunged to their lowest level in 15 years despite an endorsement from Saudi Prince Alwaleed bin Talal yesterday, who said he plans to increase his stake to five per cent from less than four per cent.
Investors are not convinced the bank has announced the last of its losses and some analysts have predicted the group will need to raise more capital soon.
Citigroup is struggling with massive losses since the credit crunch began and by June 2009, around 75,000 jobs are expected to have been cut.
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