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Citigroup Said To Consider Sale

NEW YORK CITY-Published reports say the largest office tenant in New York will convene a board meeting today to discuss its options, and 'everything is on the table.'

By Paul Bubny | Updated on November 21, 2008

NEW YORK CITY-Citigroup, which fell from first to fifth place among US banks as its stock market value has plunged more than 90% in two years, is reportedly considering a sale of parts or all of the company. Published reports say the company’s board is meeting today to discuss its options, and CEO Vikram Pandit has reportedly said “everything is on the table.” However, a breakup of the company is reportedly not among the possible scenarios.

Citigroup’s share price closed at $4.71 Thursday, a 26% drop that was its steepest one-day percentage decline ever. According to published reports, if the company is unable to bring the stock back above $5 before year’s end, institutional investors will be forced to sell their entire holdings. Worth $274 billion at the end of 2006, Citigroup is reportedly worth $26 billion today.

The stock plunge follows three days after Pandit announced that Citigroup would eliminate 52,000 jobs company-wide over the next year. The layoffs follow 23,000 job cuts already made earlier this year and will bring Citigroup’s worldwide head count from 375,000 at the start of 2008 to 300,000.

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