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?
Citigroup Reports $8.3 Billion Loss, Splits Into Two
Bradley Keoun and Josh Fineman
Bloomberg Jan. 16 2009
Citigroup Reports Big Loss and a Breakup Plan
MATTHEW SALTMARSH and ERIC DASH
NYT, January 16, 2009
Citigroup posts $8.29B loss, splits up the company
AP, January 16, 2009