Tuesday, November 27, 2007

Abu Dhabi will invest $7.5 billion in Citigroup

Los Angeles Times today:
Citigroup Inc., suffering huge losses on mortgage-related securities, said late Monday that an arm of the Abu Dhabi government would invest $7.5 billion in the giant U.S. bank.

The cash infusion would give the Abu Dhabi Investment Authority a stake of as much as 4.9% in Citigroup.
...
Abu Dhabi, one of the United Arab Emirates, is buying from Citigroup equity units that would pay an 11% annual dividend and be converted into Citigroup common stock in 2010 and 2011 at prices of $31.83 to $37.24 a share, depending on the bank's stock price at that time.

Before the deal was announced, Citigroup shares fell $1, or 3.2%, to $30.70. They are off 45% this year.

Citigroup said Abu Dhabi would have "no role in the management or governance of Citi, including no right to designate a member" of its board.
Abu Dhabi. You know the one. Or is it Abu Dubai? Or Apple?

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1 Comments:

Anonymous Ev said...

The AD Gov. is on an investing rampage these days. First AMD, then Sony a few days ago, and now Citigroup.

3:55 PM  

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