There is no amount of bad press or investor discontent that can keep Citigroup from buying new pieces to add to its empire. Now that the rumors of a Bank of America tie up with Barclsys has died down, Citi can rest, at least of the time being, with the knowledge that no financial institution will be larger that it is. And, perhaps it is getting even larger.
After recently buying controlling interest in a bank in China, late word is that Citi is trying to buy UK online bank Egg, which is owned by UK insurance company Prudential. Prudential did Citigroup investors a favor and turned the offer down.
The odd thing about the potential deal is that Egg apparently loses money, but Citi was willing to pay $1.9 bllion for the chance to own it. Perhaps that is one reason why Citi’s shares are up about 7% this year while Bank of America’s have risen well over 20%.
The market want Citi to make what it has work.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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