Executives at Citigroup, faced with a plunging stock price, began weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright, reports the WSJ. The internal discussions do not signal that Citi’s board and management are backing down from their insistence that the group has ample capital and strategic direction, but with the stock down another 26% Thursday - its worst one-day decline - they are considering scenarios that were unthinkable only weeks ago. Citi’s board is to meet Friday to discuss the options. The stock slide came, reports the FT, despite news that Prince Alwaleed Bin Talal, Citi’s largest individual investor, plans to raise his stake to 5% from 4%, which at Citi’s current market value of just over $25bn would cost about $250m. In a statement, the prince said Citi’s shares were “dramatically undervalued” and expressed “full support” for chief executive Vikram Pandit. Meanwhile the cost of insuring Citi’s debt against default continued climbing, alongside interest rates on its debt. Citi executives say the group has bolstered its capital position after raising $50bn from investors and selling $25bn of preferred shares to the government. More FT analysis here.
