Rivals Lick Lips At Prospect That Big Firm Is Broken Up

The pressure is really on at Citi, with calls growing daily for the company to be broken up in the name of shareholder value. Some feel that chairman Robert Rubin shouldn't be on the look-out for one CEO, but several - folks who can run various parts of the empire and stay with their units post break-up. And, in the meantime, several rival firms are thought to be interested in acquirin Citi assets.

Wachovia is thought likely to be interested in Citi's investment banking business, whilst JPMorgan Chase would be keen to buy the brokerage operation and Morgan Stanley may well have an interest in buying the US retail bank. At the moment, however, Rubin & Co are insisting that a break-up of Citi is just not on the agenda.

On the subject of Citi, Reuters reports that former company chairman & CEO Chuck Prince, who stepped down earlier this week, will walk off with a retirement package of some $40m. The payout includes $1.28m in vesting options, $10.7m in vesting restricted stock and $16.05m in vesting deferred stock. Prince is thought to already own around $53m of Citi shares.

Finally, The New York Post reports that Prince was seen at the Four Season Grill in New York earlier this week, greeting the great and the good. According to the newspaper's sources, however, Prince avoided Sandy Weill, who was also present, prompting speculation that the pair had fallen out. (Our thanks to Wall Street Folly for pointing out this item).