This latest development comes on the heels of Nikko's four largest shareholders rejecting the deal. As you'll read in the linked Bloomberg report:
"Citigroup's going to have to change its strategy,'' said Hiroyuki Maekawa, an analyst at Deutsche Securities Inc. in Tokyo who has a "hold'' rating on the stock. "It's unlikely investors will sell at such a low price.''
I think that's true. I read one report that Mackenzie/Cundill people met have with Nikko officers to go over Citigroup's offer. The Mackenzie/Cundill folks told Nikko that they like the deal as structured -- they just don't like the price offered shareholders.
So the Citi takeover of Nikko makes strategic sense. But without the threat of delisting from the TSE, the lowball offer no longer looks like it will fly.