Morning Report: Citigroup Losses, Cadbury Accepts Kraft

Citigroup reported a loss of $7.58 billion in the the fourth quarter, after repaying $20 billion of government bailout funds in December. The bank is currently working to sell or unwind businesses that detract from its core of investment banking and consumer and business banking. A group of these businesses, Citi Holdings, had a $2.44 billion loss in the fourth quarter. Citi's loss was significantly less than the record $17.3 billion loss it reported in the fourth quarter of last year, but the bank is struggling to keep up with competitors like JPMorgan Chase & Co., which said last week that profit more than quadrupled from a year earlier.

Cadbury and Kraft Foods have struck a deal to create the world's largest confectioner. Kraft increased its original bid for the company by about 9 percent after Cadbury referred to its first offer as "derisory." The planned purchase will displace Mars Inc, as the world's biggest candy maker and create a company with nearly $50 billion in annual sales.

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