May 3, 2008 / 12:53 AM / in 10 years

UPDATE 1-Pandit's hedge fund to be restructured -Citigroup

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NEW YORK, May 2 (Reuters) - Citigroup Inc (C.N) said it is looking at restructuring Old Lane, a hedge fund co-founded by Vikram Pandit, the bank’s chief executive.

Nearly all investors unaffiliated with the fund have requested to redeem their money from the fund, Citi said in a regulatory filing.

Citi bought Old Lane last year for more than $600 million, but the fund’s performance has since been disappointing. Citi wrote down $200 million of intangible assets linked to the acquisition in the first quarter.

Citi also said in its quarterly filing that its recently announced sale of most of CitiCapital to GE Capital, a unit of General Electric Co (GE.N), would result in an after-tax loss of about $325 million.

The sale of CitiStreet to ING Groep NV ING.AS (ING.N), announced earlier on Friday, would result in an after-tax gain to Citi of $200 million, according to the filing. CitiStreet is a joint venture with State Street Corp (STT.N). (Reporting by Dan Wilchins; Editing by Braden Reddall)

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