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Citigroup Outbids Street For Angelo Gordon, Sovereign Portfolios

11 Mar 2005

Citigroup won two portfolio auctions totaling $308 million last week.

Citigroup won two portfolio auctions totaling $308 million last week. The first, reported last Thursday on LMW's Web site, was a $232 million portfolio of 56 par names sold byAngelo Gordon that went for 102.37, said traders. The cover bid was 102.26. The portfolio included Wyndham International, Smurfit-Stone Container Corp., Invensys, Jostens Intermediate Holding Corp. and $20 million of General Growth Properties (GGP). A trader said the portfolio was maturing and Angelo Gordon was returning money to equity holders. Officials at Citi and Angelo Gordon declined comment. Last summer, Angelo Gordon sold a $240 million portfolio to Bear Stearns. The cover bid at that auction was 100.78 (LMW, 8/23).

Citigroup also bought a $76 million portfolio of real estate names auctioned off by Sovereign Bank. The winning bid was placed north of par. Morgan Stanley, Bank of America and Wachovia Securities were named as the other bidders. The reasons for the sale could not be determined and Sovereign officials did not return calls.

11 Mar 2005