Citigroup (C) has finally sold its Phibro energy trading unit for a price that seems far below what one would've expected. It's unclear how much Occidental Petroleum is paying for the commodities unit. According to the Financial Times, "Occidental said its net investment in Phibro would be $250 million, but Citi executives said the oil group would pay about $500 million, equivalent to the book value of the unit. Analysts said that was still low for a unit that averaged profits of $200 million a year since 1997 and made $600 million last year."

Kenneth Feinberg, the pay overseer, was of course involved in the decision to sell Phibro. Andrew Hall, the man who was to be paid $100 million for 2008, is not crying in his beer over his pay misfortune. He and Occidental Petroleum have set up Astenbeck Capital Management. The new firm will manage outside money and already has raised $1.4 billion. Phibro will manage Occidental's proprietary funds. 

For more:
- here's the FT article

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