merger of citi n travelers

8/11/2019 Merger of Citi n Travelers

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SUBMITTED TO-

PROF PAWAN JAIN


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GROUP MEMBERS

ANMOL GAJRIA PRIYNKA KADAM

SONIKA SHET

SUKRATI SINGH

SUBMITTED TO-

PROF PAWAN JAIN


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AGENDA MERGERS AND ACQUISITIONS

TYPES OF MERGERS

CITI CORP

TRAVELERS GROUP

BEFORE MERGER

MERGER EVENT

PHASE OF 1998-2001 TRAVELERS GROUP SPIN OFF

TRAVELERS GROUP SPUN OFF

CITI SPUN OFF

CURRENT STATUS OF CITI AND TRAVELERS GROUP


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MERGERS Joining of two separate

corporations

Dissolution of oldbusiness into a new

entity

ACQUISITION Taking possession

another business

Share purchase opurchase


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TYPES OF MERGERS

Horizontal merger

Vertical merger

Product-extension merger

Market-extension merger

Pure Conglomerate merger


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Travelerswas founded in 1864 in Hartford

Early 1990sWent through series of M&A

Exit in 1993 of original business

1995named as travelers group

1996 - bought Aetna's property and casualty busine
http://en.wikipedia.org/wiki/Aetnahttp://en.wikipedia.org/wiki/Aetna


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BEFORE MERGER


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MERGER EVENT

Announced on April ,1994merged into Citigroup Inc on October 8

Congeneric Merger

Co-CEOsReed from Citicorp

Weill from Travelers

Each holds half of the equity of citigroup

exchange rate of stock

Citicorp 12.5 Travelers 11


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MERGER EVENT( Priyanka)

Board of Directors

9 for Citicorp9 for Travelers

Date of Announcement

Citicorps stock price

$142.875 $180.50

Travelers Group price$61.6875 $73.00

This is the biggest illegal merger in U.S


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THE PHASE OF 1998-2001

On April 6, 1998, the merger between Citicorp and Travelers Group w

announced Travelers Group purchasing the entirety of Citicorp shares for $70 billi

issuing 2.5 new Citigroup shares for each Citicorp share

Combined they were having 161,700 employees

The chairmen of both parent companies, John Reedand Sandy Weillrwere announced as co-chairmen and co-CEOs of the new company

Joe Plumeriheaded the integration of the consumer businesses of aftmerger

In 2000, Citigroup acquired Associates First Capital Corporation

In 2001, Citigroupmade additional acquisitions: European American Bfor $1.9 billion,[52]and Banamexin August, for $12.5 billion.[53]
http://en.wikipedia.org/wiki/John_S._Reedhttp://en.wikipedia.org/wiki/Sandy_Weillhttp://en.wikipedia.org/wiki/Joe_Plumerihttp://en.wikipedia.org/wiki/Citigrouphttp://en.wikipedia.org/wiki/Banamexhttp://en.wikipedia.org/w/index.php?title=European_American_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Citigrouphttp://en.wikipedia.org/w/index.php?title=European_American_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Citigrouphttp://en.wikipedia.org/wiki/Banamexhttp://en.wikipedia.org/wiki/Citigrouphttp://en.wikipedia.org/wiki/Citigrouphttp://en.wikipedia.org/wiki/Banamexhttp://en.wikipedia.org/wiki/Citigrouphttp://en.wikipedia.org/w/index.php?title=European_American_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Joe_Plumerihttp://en.wikipedia.org/wiki/Joe_Plumerihttp://en.wikipedia.org/wiki/Sandy_Weillhttp://en.wikipedia.org/wiki/John_S._Reed


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TRAVELERS GROUP SPIN OFF 20

The spin off was prompted by Traveler's earnings were moreand vulnerable to large disasters

Traveler's earnings were more seasonal and vulnerable to ladisasters

On August 20, 2002- The distribution of shares

67 percent chunk of the company is spun off to the sharehoits parent, Citigroup.

23 percent stake of Hartford-based Travelers was sold to thean initial public offering in March.


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TRAVELERS AFTER SPUN OFF

Citigroup sold Travelers Life & Annuity to MetLife. In 2003-Travelers bought renewal rights for Royal & SunAllia

Personal Insurance and Commercial businesses

In 2004-St. Paul and Travelers Companies merged and renamitself St. Paul Travelers

In 2007-changed the corporate name to The Travelers Com
http://en.wikipedia.org/wiki/MetLifehttp://en.wikipedia.org/wiki/MetLife


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CITI AFTER SPUN OFF

Sukrati


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CURRENT STATUS- CITI ANDTRAVELERS

sukrati


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merger of citi n travelers

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