Original URL: http://www.theregister.co.uk/2007/01/29/citigroup_buys_eggs/
Citigroup lays loss-making Egg
Prudential waves goodbye to double yolker
Posted in Financial News, 29th January 2007 18:22 GMT
Free whitepaper – Optimizing the data center for cost and efficiency
Prudential PLC, the British financial services company, is to sell its loss making internet banking unit Egg to Citigroup for £575m ($1.127bn) cash.
Since launching in 1998, Egg has become the world's largest purely online banking outfit, but last year made a loss on the tidal wave of personal debt which saw record numbers declare bankruptcy. Murmurs that the Pru would ditch Egg have been bubbling under for a while (http://www.theregister.co.uk/2005/10/12/pru_egg/).
George Awad, EMEA CEO, Citigroup Global Consumer Group, said: "We like Egg’s brand; we like Egg’s platform; we like Egg’s customer engagement model; and we like Egg's customer set."
So, to recap; George likes Egg. Citigroup said the deal should close in the next 60 to 90 days, subject to the regulatory thumbs up.
Citigroup's take on the deal is here (http://www.citigroup.com/citigroup/press/2007/070129a.htm). ®