Splitty-Group

January 16, 2009 9:26am by Barry Ritholtz

Alternative title: $%#tty-Group

Oh terrific: We are going to have two medium size piles, instead of one giant compost heap.

Is this going to be a good bank/bad bank split, or is it more accurate to say its a bad bank/worse bank ?

~~~

Serious question: Can you name any mega-mergers that have actually worked as advertised? Outside of Oil/commodity firms (Exxon Mobil, Conaco Phillips, BP Amoco are just piles of similar resources), has ANY massive M&A conglomerate actually worked out?

Monster firms all seem to have similar problems: Clash of egos, disparate business lines, frictional corporate cultures.

The one successful example I can think of is Oracle — but they have mostly bought firms started by former employees.

Have any jumbo mergers actually worked out for shareholders?

See Also:
Citigroup Reports $8.3 Billion Loss, Splits Into Two
Bradley Keoun and Josh Fineman
Bloomberg Jan. 16 2009
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZXvO7Nbgs_E&

Citigroup Reports Big Loss and a Breakup Plan
MATTHEW SALTMARSH and ERIC DASH
NYT, January 16, 2009
http://www.nytimes.com/2009/01/17/business/17citi.html

Citigroup posts $8.29B loss, splits up the company
MADLEN READ
AP, January 16, 2009
http://www.google.com/hostednews/ap/article/ALeqM5i2PNpRzvc02u8Hv6VQVBeTamWXqgD95O9IHG6

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