Citigroup Agrees to Give Activist ValueAct Details on Strategy
- It’s a signal ValueAct might agitate for change, analyst says
- ValueAct says it will support board, executives through 2019
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Citigroup Inc. signed an agreement with shareholder ValueAct Capital Management that allows the bank to share confidential information with the activist hedge fund about strategy, governance and planning.
ValueAct guaranteed support for the bank’s executives and board through December as part of the agreement. Analysts have wondered how involved the investor would be at the firm after ValueAct said last year that it had built a stake, noting the success of Citigroup’s treasury-services unit that provides the financial “plumbing” for many multinational corporations.