Yesterday, we raised the question of why Citadel dropped the “Citadel” word from one of its units [Citadel Solutions] and rebranded it Omnium the same day it was selected by Lehman Brothers Holdings Inc. to deal with its bankruptcy proceedings .
This morning, FT’s Tracy Alloway gives a plausible answer. It turns out that Citadel’s Equity Fund is suing the Lehman bankruptcy estate for $470 million. So Citadel may have just wanted the administrative division that is still doing business with Lehman not to be confused with the equities trading fund that filed the claim.
“The name change, we think, does not really have much to do with Citadel wanting to disassociate itself from the failed Lehman Brothers, per se, but rather distinguish between its equity fund and its administration unit — which has just nailed its biggest client yet in the shape of Lehman,” Alloway writes.
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