Sunday, May 25, 2008
Citi's crisis management
The way Citi's management is handling things is most disturbing, I doubt if shedding assets "that they call non core" in this environment is the right decision.
UBS for example is resorting to a different strategy, a rights issue at a 31 percent discount below the current share price.
Citi share price will test its 52 week low sooner or later, however the sooner they get out of all this mess the better, selling those assets at or near their book value may take years. This will surely lure big long term investors away.
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