SUBMITTED TO-

PROF PAWAN JAIN

GROUP MEMBERS
ANMOL GAJRIA
PRIYNKA KADAM
SONIKA SHET
SUKRATI SINGH
SUBMITTED TO-
PROF PAWAN JAIN
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




MERGERS
Joining of two separate
corporations

Dissolution of old
business into a new
entity


ACQUISITION
Taking possession of
another business

Share purchase or Asset
purchase
TYPES OF MERGERS
Horizontal merger
Vertical merger
Product-extension merger
Market-extension merger
Pure Conglomerate merger
City Bank of New York was chartered by New York State on June 16, 1812, with $2 million of capital
1865 - company's name was changed to The National City Bank of New York
1888 - introduction of U.S. dollardenominated certificates of deposit in London
1921 - the bank became a leading innovator in financial services, becoming the first major U.S. bank to offer compound
interest on savings
1955 - The bank changed its name to The First National City Bank of New York
1962 150th anniversary of the company's foundation
1967 First National City Charge Service credit card Everything Card Master Card

1976 - First National City Bank (and its holding company First National City Corporation) was renamed as Citibank
Travelers was founded in 1864 in Hartford
Early 1990s Went through series of M&A
Exit in 1993 of original business
1995 named as travelers group
1996 - bought Aetna's property and casualty business
BEFORE MERGER
MERGER EVENT
Announced on April ,1994
merged into Citigroup Inc on October 8
Congeneric Merger
Co-CEOs Reed from Citicorp
Weill from Travelers
Each holds half of the equity of citigroup
exchange rate of stock
Citicorp 12.5 Travelers 1 1

MERGER EVENT( Priyanka)
Board of Directors9 for Citicorp
9 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
THE PHASE OF 1998-2001
On April 6, 1998, the merger between Citicorp and Travelers Group was
announced
Travelers Group purchasing the entirety of Citicorp shares for $70 billion, and
issuing 2.5 new Citigroup shares for each Citicorp share
Combined they were having 161,700 employees
The chairmen of both parent companies, John Reed and Sandy Weill respectively,
were announced as co-chairmen and co-CEOs of the new company
Joe Plumeri headed the integration of the consumer businesses of after the
merger
In 2000, Citigroup acquired Associates First Capital Corporation
In 2001, Citigroup made additional acquisitions: European American Bank, in July,
for $1.9 billion,
[52]
and Banamex in August, for $12.5 billion.
[53]

TRAVELERS GROUP SPIN OFF 2002
The spin off was prompted by Traveler's earnings were more seasonal
and vulnerable to large disasters
Traveler's earnings were more seasonal and vulnerable to large
disasters
On August 20, 2002- The distribution of shares
67 percent chunk of the company is spun off to the shareholders of
its parent, Citigroup.
23 percent stake of Hartford-based Travelers was sold to the public in
an initial public offering in March.
TRAVELERS AFTER SPUN OFF
Citigroup sold Travelers Life & Annuity to MetLife.
In 2003-Travelers bought renewal rights for Royal & SunAlliance
Personal Insurance and Commercial businesses
In 2004-St. Paul and Travelers Companies merged and renamed
itself St. Paul Travelers
In 2007-changed the corporate name to The Travelers Companies
CITI AFTER SPUN OFF
Sukrati
CURRENT STATUS- CITI AND
TRAVELERS
sukrati