In a move to possibly boost its revenue, Citigroup bought the internet bank Egg from the UK insurer Prudential
for only 75 million pounds. This is 375 million pounds less than the original value, or about 40% less value than that
assigned by Prudential just a year ago. The reason for the sale, according to Prudential was growing losses for Egg.
The bank was estimated to have lost 145 million pounds last year alone. The move was considered a good one by
analysts as this was the best price on the market. According to experts, Prudential would have needed to infuse
additional capital into Egg if it would have had to fetch a better price. However, this move would not have gone well with
investors.

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Posted by Shue on April 27th, 2009 :: Filed under Citygroup
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