Citigroup Announces it Has Gained Full Control of Nikko Cordial

Includes: C, NIKOY
by: John Bethel

Citigroup (NYSE:C) has announced that it now owns 69% of Nikko Cordial (OTC:NIKOY) -- more than the two thirds required to control the company:

The New York-based bank needed to raise its stake to two- thirds to be able to merge or sell units without the consent of other shareholders. Chief Executive Officer Charles Prince, under pressure from investors to boost profit and the company's share price, gained more than 100 branches in Japan from the Nikko acquisition, adding to purchases in China and Taiwan over the past six months.

Reports are that Citigroup added to its stake at 1,700 yen per share -- some in a private placement. I was hoping Citi would pay up to gain full control. That obviously hasn't happened. I think Citi management is competent, so I'm holding my Nikko Cordial ADRs for now. I'll alert readers if that changes, of course.

NIKOY 1-yr chart