Citigroup CFO analyzes high-profile mergers

Citigroup CFO Heidi Miller speaks in Associate Professor Robert Bloomfield's class April 21. Sheryl Sinkow/University Photography

Heidi Miller, chief financial officer at Citigroup, spoke in Associate Professor Robert Bloomfield's course, The Tax Implications of Mergers and Acquisitions, at the Johnson Graduate School of Management April 21.

Citigroup, one of the world's largest financial service firms, was formed when the Travelers Corp. and Citibank merged in 1998. Miller recently was listed by Forbes magazine as the third highest ranking female executive in the country. During her talk, which was titled "The Anatomy of a Merger," she noted that the cost savings merged companies realize when they eliminate redundancies are less important than these motivators of mergers: increased financial leverage, improved sales through cross-selling and the opportunity to balance out one firm's weaknesses with another firm's strengths. For example, she said, Travelers had excellent sales and distribution networks but little developed business outside the United States, while Citicorp had an exceptionally strong international presence but needed better distribution channels for its financial products.

During her visit, Miller also gave career advice to members of the Women's Management Club, a student group of aspiring executives. Her most surprising revelation was that her doctoral studies in Latin American history led to her career in banking. Her knowledge of the area was useful to banks doing business in that region, she said.