Citi/SBF Goliath sues for peace

Citigroup has come to its senses. After a grudging standoff with dissident shareholders, led by hedge fund Elliott Associates, the board of the closed Salomon Brothers Fund said it would recommend converting into a mutual fund at net asset value after the fund gets transferred to Legg Mason on December 1. That means the hedge funds that bought SBF at a discount to its assets can get out at a profit. Since that’s what they will do, Citi may have to renegotiate with Legg Mason the price at which ...