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http://www.reuters.com/article/businessNews/idUSTRE5760FH20090807?feedType=RSS&feedName=businessNewsNEW YORK (Reuters) - Citigroup Inc may give control of its Phibro commodities business to Andrew Hall, the energy trader making headlines for demanding a $100 million payday under his contract, The New York Times said on Thursday, citing a person with knowledge of the negotiations.
The possibility is one of many options that Citigroup is considering after it had mulled a sale of Phibro to Warren Buffett's Berkshire Hathaway Inc, the newspaper said. Talks with the billionaire investor went nowhere, and there was no firm discussion of price, it said.
Citigroup and Berkshire did not immediately return calls seeking comment. A bank spokeswoman told the newspaper: "We are evaluating the best way forward for stakeholders."
The newspaper said Citigroup may decide to transform Phibro into a partnership led by Hall, turning the bank into a limited partner with a smaller share of the profits, and requiring the bank to find new investors in that business.
Other options include asking Hall and other traders to work without contracts, replacing Phibro's leadership, or winding down the unit, the newspaper said.
These options could backfire given that Phibro has provided Citigroup with considerable recent profits, and that much of Phibro's worth is thought to derive from Hall's abilities and continued presence.
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