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Citigroup (C) Plans to Build Its Strategic Advisory Team

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Per a Reuters article, Citigroup (C - Free Report) is mulling to create a strategic advisory group in its investment banking division. The group is likely to consist of nearly 80 bankers and will be formed by merging the financial strategy group, and the shareholder advisory and data science group.

With the help of its data capabilities, the group would provide advice to customers on their asset base, corporate finance structure and tax strategies.

The article quoted Tyler Dickson and Manolo Falco, global heads of Citigroup's Banking, Capital Markets and Advisory Group, "Bringing these businesses closer together will help scale their respective impact and harness our intellectual capital more effectively."

"Our shareholder advisory group has been helping clients look beyond the near-term to assess their potential vulnerabilities from a defense perspective, as well as consider opportunities for potential growth and M&A as the market slowly finds some stability," said Muir Paterson leader of Citigroup's activist defense group.

The major Wall Street banks have been building their shareholder advisory and activism defense teams of late. Morgan Stanley (MS - Free Report) has been mulling hiring shareholder activism analysts to bolster its defense group within the M&A unit. Also, JPMorgan (JPM - Free Report) is looking for associates for its shareholder activism defense team.

In 2019, Goldman Sachs (GS - Free Report) ranked as the top adviser to companies targeted by activist investors. In order to achieve the top spot, the company advised on 48 campaigns.

Recently, Citigroup was also in news for plans to introduce a unit — Sustainability & Corporate Transitions group — in its corporate and investment bank, which would advise companies on their environment, social and governance (ESG) strategies.

Shares of Citigroup have slumped 26.6% over the past six months compared with a 26.3% decline recorded by the industry.

 

 

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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