Citigroup share sale commences

| April 26, 2010 | 0 Comments
Citigroup share sale commences

Last month, the US Treasury Department announced plans to sell its 27% stake in Citigroup this year, in what will be one of the largest stock sales ever.

Today, the Department said it had authorised the first sale of up to 1.5 billion shares - the equivalent of around 20% of the 7.7 billion shares of Citigroup common stock that the Government holds.

Morgan Stanley has been appointed to underwrite and advise on the sale and the Treasury said it will proceed with the sales of the Citigroup common stock “in an orderly fashion” with its agent.

Citigroup, which was once regarded as one of the USA’s highly respected financial institutions, was once the world’s largest banking group.

However, fears over its financial health intensified and as a result, its share price has lost around 90% in value since late 2006.

The bank suffered massive losses after the sub-prime mortgage crisis and it was forced to accept three Government bailouts in 2008 and 2009, in return for shares.

The Treasury expects to make about $7.5 billion in profits from the sale of its Citigroup stake.

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