On tonight’s MAD MONEY on CNBC, Jim Cramer said that he wants to address the board of Citigroup (C-NYSE) because they are sitting on a goldmine: He questions the whole strategy besides Chuck Prince. Cramer says the one-stop shop doesn’t work and they can unlock value by breaking it up. Cramer says it is time to break the company up. He said it would go from $54.00 to $63.00, or 17% upside. This is on top of the $5.00 if Chuck Prince would leave, or if they could even do a restructuring. Cramer bought shares for his trust and here are the 5 units it would become: Consumer business (banking, cards); intl consumer business; golbal markets; alternative investments; transaction services.
Cramer says this is not inevitable at all and he is not sure it would happen. Cramer did not address the fact that Prince Alwaleed Bin Talal, its largest shareholder, just announced last week that he was against breaking the company up for the longer-term strategy. I have been vocal about Chuck Prince needing to go, and while Prince Alwaleed Bin Talal gave a vote of conficence in Chuck prince I am not yet inclined to believe that he won’t fire him.
Jon C. Ogg
June 4, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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