Published 01 Jan 1998
Reference 4767
Industry Banking
Region North America
Length 22 page(s)
Language English

This case deals with the largest merger in history -- the 1998 announcement of Citicorp and Travelers, Inc. to create the world’s largest financial services firm. It considers the public policy issues surrounding the merger, and the value of multifunctional financial conglomerates (MFCs) to shareholders by focusing on possible value creating and value-destroying aspects combination of the two firms.

Teaching objectives

Identification of the sources of gain to owners in a financial Mega-Merger considered the largest in history. Key elements are the economies of scale and scope, market power, management of complexity and related issues.

  • RD0798