A The New York Post article published Wednesday says that two out of three of CitiFinancial's bidders have dropped out of the auction.
Brysam Capital, Blackstone (BS), Carlyle Group, THL Capital and WL Ross -- which were bidding together for the unit -- have dropped out. Also taking a pass are Apollo Management (APO) and JC Flowers, which were working on a joint bid.
The remaining bidder is Fortress (FIG), according to The New York Post, which added that Citigroup has been reluctant to include the private equity business in the auction.The bidders are reportedly not happy with the financing package Citigroup is offering, according to the article. Citigroup has been trying to sell the restructured CitiFinancial unit since December. The unit has over 1,500 branches, $13 billion in subprime and is valued at $2 billion, according to The Post. The auction is set to finish up in the next few weeks. It is unlikely that Citigroup will sell the unit for less than $2 billion. Citigroup Holdings CEO Michael Corbat told TheStreet in December that, "When the market is willing to pay us the value of those assets we will happy to sell them." Citigroup had no comment. --Written by Maria Woehr in New York.
To contact the writer of this article, click here: Maria Woehr. To follow the writer on Twitter, go to http://twitter.com/newsgirlmw. To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV