Citigroup considers cracking Egg deal
US investment bank Citigroup is pondering a potential £1bn (€1.45bn) bid for internet bank Egg, it was reported today.
Citigroup is looking for small bolt-on European acquisitions and “Egg would fit the bill”, according to an analyst cited by The Observer.
Although no-one from Citigroup was available to comment, the newspaper quoted a spokesman for the bank as saying: “We never comment on market rumour or speculation.” An Egg spokeswoman said: “We can’t comment on it.”
Egg’s owner Prudential is thought to be keen to sell the online bank, which made operating profits of £10m (€14.5m) in the first three months of 2005.
The Pru, under former chief executive Jonathan Bloomer, failed to sell Egg last year at an asking price of £1.5bn (€2.2bn).
However, the insurance giant’s new boss Mark Tucker is believed to be more amenable to a lower-priced deal.
Egg is believed also to have attracted interest from US credit card firm MBNA, which has its UK base in Chester and reportedly is considering a bid.
