Dennis Block, co-chair of the corporate M&A practice at Cadwalader, Wickersham & Taft, told CNBC’s “Closing Bell” that activist shareholders are unlikely to break up Citigroup.
“It’s a wakeup call,” Block said Friday. “(Citigroup) has a very competent CEO who understands the need to get out there and explain why the business makes sense and how he’s going to grow it and how share price is going to be reflected by his activities.”
Tom Brown, chief executive officer of Second Curve Capital, argues that Citigroup should be broken into four companies: U.S. consumer finance, international consumer finance, investment banking and wealth management.
Shareholders have long complained that Citigroup’s stock doesn’t reflect the true value of the company. The complaints aren’t new – just louder.