Travelers Group Announces acquisition of Citicorp

The biggest news of the week of April 8 was the announcement by Travelers Group of its acquisition of Citicorp, offering 2.5 shares for every share of Citicorp. The stocks of both companies surged dramatically on the announcement - Citicorp by 26% from $ 150 to $ 187, and Travelers by 14% from $70 to $ 81, creating almost $ 25 billion in value on the announcement day. If markets are to be believed, this merger will create $ 25 billion in value. You can estimate the value of synergy yourself, using the spreadsheet below:


If you want more information on the merger, you can get if from either the New York Times business section or the Wall Street Journal.