Citigroup to Sell Up to 20% of Travelers Property Casualty Corp. in Initial Public Offering With Intention to Spin Off Remainder of Company to Citigroup Shareholders.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 19, 2001 Robert I Robert I, duke of Normandy Robert I (Robert the Magnificent), d. 1035, duke of Normandy (1027–35); father of William the Conqueror. He is often identified with the legendary Robert the Devil. . Lipp Reappointed Chairman and Chief Executive Officer of Travelers Property Casualty Citigroup announced today that it plans to spin off its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Travelers Property Casualty Corp. by selling up to 20% in an initial public offering and spinning off its remaining majority interest on a pro-rata Pro-rata Used to describe a proportionate allocation. Notes: For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share they own. See also: Dividend basis to Citigroup shareholders in a tax-free transaction. The initial public offering is expected to take place in the first quarter of 2002, with the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. to be concluded by year-end 2002. Robert I. Lipp, a Citigroup Director, has reassumed the position of Chairman and Chief Executive Officer of Travelers Property Casualty. Citigroup units will continue to offer Travelers Property Casualty products. The companies also plan to enter into management agreements under which Citigroup will provide investment advisory and other services to Travelers Property Casualty. "In addition to enabling Citigroup to focus its resources more fully on higher growth areas of global financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , this spin-off creates a stand-alone, leading publicly-owned property casualty company," said Sanford I. Weill Sanford I. Weill, commonly known as Sandy Weill (born March 16 1933) is a banker, financier and philanthropist. He was formerly the chief executive officer and chairman of Citigroup Inc. He served in those positions until October 1 2003 and April 18, 2006 respectively. , Chairman and Chief Executive Officer of Citigroup. "We are delighted that Bob Lipp, who led Travelers' turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. and integration with Aetna's property and casualty business in the1990's, has agreed to serve as the company's Chairman and Chief Executive Officer." "This spin-off positions Travelers Property Casualty to participate independently in the accelerating consolidation of the insurance industry," said Lipp. "Having been involved with Travelers for more than nine years, I have great confidence in the management, employees and franchise. I am also pleased that we are establishing Travelers Property Casualty as an independent public company headquartered in Hartford, where we have been a vital part of the community for more than 135 years." The second step of the transaction is subject to various regulatory approvals as well as a private letter ruling from the Internal Revenue Service that it will be tax-free to Citigroup shareholders. The amount Citigroup will receive in the initial public offering will depend on market conditions. Prior to the initial public offering, it is intended that Travelers Property Casualty will declare a dividend of approximately $1 billion, which will be paid to Citigroup over the course of 2002. Citigroup will hold a conference call and webcast at 8:15AM Wednesday, December 19, 2001 to discuss the transaction. The conference call may be accessed by dialing: -- Domestic: 888-769-8912, passcode: 1219 -- International: 712-271-3652, passcode: 1219 To assure access, please call by 8:00 AM. The webcast will be available at www.citigroup.com Replay (after 11:00 am) -- Domestic: 800-879-7995, passcode 1219 -- International: 402-220-5347, passcode 1219 This statement does not constitute an offer of any securities of Travelers Property Casualty Corp. for sale. Citigroup (NYSE NYSE See: New York Stock Exchange : C), the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae global financial services company, provides some 190 million consumers, corporations, governments and institutions in over 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. Major brand names under Citigroup's trademark umbrella are Citibank, CitiFinancial, Primerica, Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. , and Travelers under Citigroup's trademark red umbrella. Additional information may be found at www.citigroup.com |
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