Citigroup Inc and Japanese brokerage Nikko Cordial said on Wednesday they have altered clauses in a stock-swap deal to make Nikko a wholly-owned unit in the wake of a recent slide in Citigroup's share price.
Citigroup said in a statement that is has agreed to eliminate a clause specifying that their share swap ratio be calculated based on a maximum average of $58 per Citigroup share and minimum average of $37 per share.
Citigroup's stock has fallen sharply over the past month and last traded at $35.9 on Tuesday.
Citigroup said that they had also altered a termination clause so that the deal could be cancelled if the average volume-weighted price of Citigroup's stock fell below $22, instead of $26 under the previous agreement, between January 15-17.
Citigroup said the deal could still proceed below that price if both parties agreed to do so by January 21.
(Reporting by Taiga Uranaka and Nathan Layne; Editing by Malcolm Whittaker)