Citigroup selling Nikko Cordial unit for $7.9 bln

Discussion in 'Wall St. News' started by ASusilovic, May 1, 2009.

  1. Citi said Friday that it is selling its Japanese domestic securities business, conducted principally through Nikko Cordial Securities Inc. to Sumitomo Mitsui Banking Corp. in a deal worth around 774.5 billion yen ($7.9 billion). Citi said the deal is expected to generate around $2.5 billion of tangible common equity and that it will recognize an after-tax loss of around $200 million. On a pro forma basis, the deal would have lifted the bank's March 31 Tier 1 capital ratio by around 0.27 percentage points. The deal is expected to close in the fourth quarter of 2009.

    http://www.marketwatch.com/news/sto...x?guid={A2546F01-D8D7-45AA-9D75-FDA31AB891A2}

    Does it mean Citi shares will raise today 0.27 % ?:confused:
     
  2. 1) Nikko Cordial Securities is staffed with "nice guys".
    2) The Nikko Asshole Securities subsidiary will be impossible to sell off. :cool: