Nikko Cordial shares slump after Citigroup says it will cut stake

0 Comments | AFP, June, 2004

TOKYO (AFP) — Share prices of Nikko Cordial fell sharply after its partner Citigroup said it would trim its equity interest in Japan's third-largest brokerage to 12 percent from the current 21 percent.

Nikko Cordial was down 42 yen or 7.56 percent at 513 yen on the Tokyo Stock Exchange in the morning session.

Citigroup will float up to 180 million shares in Nikko Cordial, and Nikko will buy up to 90 million shares to be sold by the US megabank, to limit the impact of the dilution, according to their announcement made late Monday.

Goldman Sachs Securities analyst Takehito Yamanaka said he had lowered his rating on Nikko Cordial to "underperform" from "in-line" on a possible dilution of the value of shareholders stemming from the floatation estimated at 50...