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  • Why Is Citi Selling Phibro for Less Than One Year's Net Earnings? [View article]
    Formyx has nailed the key question. While Phibro may have produced megabucks in profits, if it tied up many multiples of those amounts in capital, then the capital costs may not have been acceptable for Citigroup in the new reality of high priced capital.


    On Oct 13 08:44 AM Formyx wrote:

    > The question is what OXY really buys. If they simply takeover a proprietary
    > trading team then a valuation of 10% of assets is not cheap. Therefore,
    > the crux is of whether there are any hard assets or otherwise that
    > they buy. All the numbers sloshing in the press fail to provide this
    > information as well as of how much capital they tied up to produce
    > the profits. In typical Salomon fashion their trading desks always
    > advertised profits than returns. has anyone seen the details of the
    > assets to be transferred?
    Oct 13 09:18 am |Rating: +4 0 |Link to Comment
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