Citigroup seeks HP advice for reviving its fortunes
Citigroup has sought helping hand from computer maker Hewlett-Packard on how the latter managed to revive its fortunes without breaking the company, a media report said on Tuesday.
By PTI |
NEW YORK: Vikram Pandit-led banking behemoth Citigroup has sought helping hand from computer maker Hewlett-Packard on how the latter managed to revive its fortunes without breaking the company, a media report said on Tuesday.
Top executives from Citigroup have recently held talks with their counterparts at HP to learn how the latter has managed in the past three years to overcome a crisis similar to the current one at Citi, the Financial Times reported.
HP had rebuffed investor pressure to spin off its computer business from the rest of the group and Citigroup's decision to benefit from HP's expertise comes at a time when it has also been urged by some investors and analysts to split its wholesale and retail banking operations, the report added.
Demands are mounting for some radical actions by Pandit as the company's share price had plunged 54 per cent in the past one year, it noted. The company last week reported a first quarter loss of over five billion dollars, which was the second consecutive quarter in the red after a loss of over 10 billion dollar in fourth quarter of 2007.
"Citi's consultation with HP comes as Mr Pandit restructures the bank's sprawling information technology operations in an effort to curb expenses, and cut jobs and layers of bureaucracy. The talks between the two companies have focused on IT issues, as well as general strategy," the daily quoted unnamed people close to the situation as saying.
"Since replacing Chuck Prince in December, Mr Pandit has sought advice from several current and former executives, including John Reed, former head of Citicorp, one of Citi's predecessor companies," it added.
Top executives from Citigroup have recently held talks with their counterparts at HP to learn how the latter has managed in the past three years to overcome a crisis similar to the current one at Citi, the Financial Times reported.
HP had rebuffed investor pressure to spin off its computer business from the rest of the group and Citigroup's decision to benefit from HP's expertise comes at a time when it has also been urged by some investors and analysts to split its wholesale and retail banking operations, the report added.
Demands are mounting for some radical actions by Pandit as the company's share price had plunged 54 per cent in the past one year, it noted. The company last week reported a first quarter loss of over five billion dollars, which was the second consecutive quarter in the red after a loss of over 10 billion dollar in fourth quarter of 2007.
"Citi's consultation with HP comes as Mr Pandit restructures the bank's sprawling information technology operations in an effort to curb expenses, and cut jobs and layers of bureaucracy. The talks between the two companies have focused on IT issues, as well as general strategy," the daily quoted unnamed people close to the situation as saying.
"Since replacing Chuck Prince in December, Mr Pandit has sought advice from several current and former executives, including John Reed, former head of Citicorp, one of Citi's predecessor companies," it added.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
