To: Ben Wa who wrote (10778 ) 11/29/2002 4:48:33 AM From: RockyBalboa Read Replies (1) | Respond to of 19428 Maybe. Reuters Salomon Pulled Bid to Underwrite IPO-WSJ Friday November 29, 1:56 am ET NEW YORK (Reuters) - Citigroup Inc.'s investment-banking arm recently backed away from a fight to underwrite an initial public offering in order to avoid questions about a possible conflict of interest, the Wall Street Journal reported on Friday, citing several sources with knowledge of the matter. ADVERTISEMENT Citigroup unit Salomon Smith Barney withdrew its bid to underwrite the IPO of financial-services firm National Financial Partners. The job ended up going to Goldman Sachs Group Inc., Merrill Lynch & Co. and J.P. Morgan Chase & Co. after a four-month selection process, the Journal said. The potential conflict came in the form of a family relationship between Citigroup Chairman and Chief Executive Sanford Weill, 69, and Jessica Bibliowicz, 43, who is the chief executive officer of National Financial and also happens to be Weill's daughter, the newspaper said. In recent months, Citigroup has been embroiled in a federal probe of its stock research practices, facing charges that it misled investors by issuing biased research in order to win lucrative investment banking deals. The company may have to pay about $500 million in fines to settle the investigation into possible conflicts of interest, sources have told Reuters.Weill had initially pressed his daughter to hire Salomon to take National Financial [public], people familiar with the discussions told the Journal. He backed off shortly before the underwriting decision was made last month, however, out of concern that the family ties could raise eyebrows amid the current controversy and compromise the deal's success, those people told the newspaper. The IPO of three-year-old National Financial is expected to raise more than $150 million when it goes public next year, the newspaper said. The Journal quoted a Salomon spokeswoman as saying: "Sandy and Jessica agreed together that it was appropriate to use other bankers." Through her attorney, Bibliowicz declined to comment, citing the quiet period required by securities laws surrounding public offerings of stock, the Journal said. Citigroup and National Financial representatives were not immediately available to Reuters for comment.