Added by Gary Dunn on January 5, 2011
The largest consumer finance company in the United States of America is up for sale. According to reports, Citigroup has evinced interest to dispose CitiFinancial to buyers at a good price.
Citigroup is aiming to generate hundreds of millions of dollars by selling stake in the consumer finance company. Spokespersons from Citi refused to comment on this Financial Times report.
Citi is in the process of restructuring its operations and has been getting in touch with potential buyers after twelve months of overhauling its operations. CitiFinancial was an attempt by the bank to present itself has a one stop shop for all financial requirements.
However, Citi failed to succeed in becoming a multipurpose financial supermarket for consumers.
Potential buyers include private equity groups and other finance companies offering loans to customers. Talks are at an initial stage and there is no evidence of any deal in the offing in the short term.
Wall Street executives and analysts speak of a price tag of more than a billion dollars. However, the final price is probably going to depend on what Citi offers to potential buyer to fund their business. This will involve a financing package that will help bring the company back in the red.