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Citi Lifts Nikko Cordial Bid

The deal is now worth $14.2 billion.
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Citigroup

(C) - Get Report

raised its offer for Nikko Cordial by more than 25% after bourses in Japan said the brokerage firm's shares would continue to trade.

The U.S. financial services giant said it will launch a tender offer for all of Nikko Cordial that values it at 1,700 yen a share, or the equivalent of $14.2 billion. Citi expects to start the all-cash offer as soon as possible. The boards of both companies have approved the price.

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Citi said it revised the deal after the decision of the Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya Stock Exchange to return Nikko Cordial's shares to normal trading status.

Previously, Citi had faced complaints from big shareholders in Nikko Cordial that the original bid was too low. A group of hedge funds, including Harris Associates and Southeastern Asset Management, felt the earlier proposal of 1,350 yen a share wasn't good enough.

Shares of Citi were down 1.1% to $49.81 Tuesday.