×

No. 3 - Citi Under Siege

According to The Financial Times, senior Citigroup (C) executives are very concerned that activist hedge funds may force a break up of the world's largest financial services company. Citi surged today on the news, before giving up most of the gains as the day went on. Will hedge funds really break up Citigroup?

Tim Strazzini says it’s very unlikely because Ciitigroup wasn’t put together to be broken apart - it was put together to take advantage of cross selling. It’s a $250 billion dollar company that Tim thinks will turn around.



Jeff Macke agrees. But he adds those senior executives have to begin operating the company better.

Dylan Ratigan changes the topic to Tyco (TYC) explaining the break-up speculation swirling around this company is probably more realistic.

Guy Adami believes that if Tyco is broken it will be worth more. “The sum of their parts equals $41 a share,” he says.

Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On APR 27, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Strazzini Owns (NWS-A), (CBS) Bolling Owns (NMX), (SZE), (VE), (XOM),Gold, Silver, (TSO 120 puts -- May), Bolling is short Nasdaq Futures, and is short S&P Futures