Citigroup Inc. may use the $5 billion it expects to receive from spinning off its
property and casualty insurance unit to make further consumer banking acquisitions, with FleetBoston Financial Corp. as a likely target, the New York Times reported, citing
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investors and bankers.
Sanford Weill, chief executive officer of Citigroup, last summer met with Fleet
Chairman Terrence Murray, the paper said, citing executives close to the conversation. The meeting was social, the paper said. At least three executives told the paper that the topic of a merger was broached.
The two banks would fit well together, the paper said, citing investment bankers and investors. An unidentified banker pointed out that Charles Gifford, Fleet’s CEO, has sold his bank once before; the person was referring to Fleet’s merger with BankBoston in 1999, the
paper said.
At the same time, Gifford may not want to sell Fleet right now, as the Boston-based company’s stock has fallen 15 percent over the past year, the paper said. The company isn’t
in merger talks, Fleet spokesman James Mahoney told the paper. Weill refused to discuss
Fleet or plans for using the spinoff’s proceeds, the paper said.
Bloomberg News
