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?



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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