Frantic Citigroup Considers Sell-Off

Merger or sale become options as bank scrambles to stop the drop
By Rob Quinn,  Newser Staff
Posted Nov 21, 2008 4:20 AM CST
Frantic Citigroup Considers Sell-Off
An office tower bearing the Citigroup logo in Queens.   (AP Photo/Seth Wenig)

Citigroup is keeping all its options on the table as its share price plunges—including selling itself, insiders tell the Wall Street Journal.  The battered giant's share price plummeted another 26% yesterday—its worst one-day hit ever—chalking up an 83% dive for the year. Directors plan crisis talks today.

Citigroup's chief insists the bank is still stable and is strongly opposed to a sell-off—but the steep slide has made once-unthinkable options a possibility. Analysts believe Morgan Stanley and Goldman Sachs are likely candidates for a Citi merger, but brutal market conditions mean suitors will be more inclined to pick off Citi's more lucrative units, rather than swallow it whole.
(More Citigroup stories.)

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