Printer Friendly PageCitigroup Inc. (NYSE symbol: C)
May 01, 2000
Schroder Salomon Smith Barney Merger Completed
Combination creates a new power in European investment banking
London — Citigroup has today completed the merger of its Salomon Smith Barney unit with Schroder Plc's investment banking business. The new unit, to be known as Schroder Salomon Smith Barney in Europe with immediate effect, will be in a unique position to offer clients an unparalleled range of products, outstanding advisory expertise and a truly global distribution platform.
The Executive Management of Schroder Salomon Smith Barney will consist of: Jim Boshart and Will Samuel, Co-Chief Executive Officers; Edward Miller, Deputy Chief Executive Officer; Michael Klein and Panfilo Tarantelli, Co-Heads of Investment Banking; David Challen and Charles McVeigh, Co-Chairmen; Anthony Nelson, Robert Swannell, Renato Ruggiero and Ron Freeman, Vice-Chairmen; Jim O'Donnell, Head of Equities in Europe; Richard Dale and Michael Crawshaw, Co-Heads of European Equity Research; Jim Forese, Head of European Fixed Income. In addition, Sir Win Bischoff has been appointed Chairman of Citigroup in Europe.
The combination of Schroders' investment banking business with Salomon Smith Barney creates a leading pan-European investment bank and effectively doubles the new unit's footprint in European Investment Banking to 600 professionals, making it also one of the fastest growing investment banks in Europe. Already, Schroder Salomon Smith Barney has seen significant benefits of this new force having been awarded over 35 joint mandates since the announcement of the merger back in January.
Additionally, the combined unit's M&A business has been given a tremendous boost. During the first quarter this year, on a pro forma basis, Schroder Salomon Smith Barney ranked fourth in terms of number of announced M&A transactions involving a European acquiror.
Year to date, Schroder Salomon Smith Barney ranks no.2 underwriter of European equity and equity-linked transactions. The Firm is also the no.1 ranked underwriter of Euro and Dollar-denominated bonds issued by corporates and a leading bookrunner in European high-yield bonds.
Jim Boshart said "The merger of Schroders and Salomon Smith Barney has created a first-class pan-European investment bank. Our ability to combine with Citibank's long-standing corporate relationships places us in good stead to reach a truly diversified and broad-reaching client mix."
Will Samuel added "Our new combination of a formidable loans, debt and equity capital markets platform, combined with an excellent advisory franchise, means that we can offer our clients a pre-eminent and comprehensive set of solutions to their corporate and investment banking requirements."
The Firm's equity research unit, which now numbers 192 analysts, will be complemented by a significantly enhanced equity sales and trading platform. With around 200 sales and trading professionals and an unmatched local European presence, the Firm has achieved critical mass to become a top 3 player in European equities. Furthermore, Schroder Salomon Smith Barney sells more US and Japanese equities to European institutions than any other Firm.
Schroder Salomon Smith Barney will be headquartered in London with almost 3,000 employees. Over the next few months, the majority of London employees will be co-located within Citigroup's new office building at Canary Wharf. The Firm also employs an additional 500 employees in offices in Frankfurt, Paris, Milan, Madrid, Lisbon, Amsterdam, Zurich, Geneva, Dublin, Warsaw, Budapest, Moscow and Tel Aviv.
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