Citigroup to merge underwriting units

Citigroup Inc. said Tuesday that it planned to combine its debt and equity underwriting operations into one division and merge its stock and bond sales units.

The combined underwriting group will be led by Tyler Dickson, 40, while the new sales group will be co-led by Antonio Cacorino and James O’Donnell, 46, according to an internal Citigroup memo. Both groups will report to James Forese, 44, who was promoted to oversee the New York-based bank’s trading businesses after Thomas Maheras’ departure Oct. 11.

Citigroup follows Morgan Stanley, Goldman Sachs Group Inc. and other Wall Street banks in combining debt and equity operations in an effort to streamline customer service by reducing the number of salespeople calling on corporate treasurers and institutional investors.

Citigroup’s shares climbed $2.33, or 6.9%, to $35.90.