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Citigroup drops USD 4.5mn renovation plan: Report

Last Updated: Wednesday, October 21, 2009 - 17:15

New York: Financial services major Citigroup
has abandoned planned USD 4.5 million renovation of its
headquarter in Brazil, says a media report.

The New York company which canceled a planned USD 4.5
million renovation of its main office in Brazil included an
area for entertaining clients and a landscaped terrace called
a "suspended garden," The Wall Street Journal said.

Attributing to people familiar with the matter, the daily
said that Citi had hired corporate-architectural firm Athie
Wohnrath Associados to overhaul three floors of its
headquarters in Sao Paulo and was set to begin the renovations

The job was supposed to be completed by early 2010,
including a 1,000-square-foot office with a panoramic view for
Citigroup`s top executive in Brazil.

On Tuesday afternoon, the report said citing person
familiar with the plan that the renovation had been reviewed
by senior executives, who decided to shelve the project.

The report noted that reversal underscores the
sensitivity inside Citigroup about its spending habits, since
the bank has received USD 45 billion from the US government, a
34 per cent owner of the company`s common stock.

According to the publication, price tag for renovation
was equal to less than 1 per cent of the Brazilian`s unit`s
annual revenue. The operation is one of Citigroup`s
fastest-growing businesses.

Bureau Report

First Published: Wednesday, October 21, 2009 - 17:15
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