Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Lehman Keeps 'Strong Buy' on Citigroup


Citigroup (C) agreed to acquire Golden State Bancorp (GSB) for a total of about $5.8 billion in cash and stock. Lehman Brothers views the deal positively for Citigroup.

Analyst Chip Dickson says the acquisition of GSB is consistent with Citigoup's strategic objective to grow profitability of its U.S. retail banking franchise, and he thinks it is being done at a attractive return. Based on preliminary calculations, the deal should return about 13% on investment before cost savings, and 15% including cost savings, he says.

He notes the deal expands Citigroup's distribution in key markets (California is the largest U.S. deposit market, while Nevada is one of the fastest growing deposit markets), builds its deposit base to $400 billion and more. He reiterated a strong buy rating on the stock.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus