by Calculated Risk on 2/27/2009 12:07:00 AM
Friday, February 27, 2009
From the WSJ: Citi, U.S. Reach Deal on Government Stake
... expected to be announced Friday morning ... the Treasury has agreed to convert some of its current holdings of preferred Citigroup shares into common stock ... The government will convert its stake only to the extent that Citigroup can persuade private investors such as sovereign wealth funds do so as well ... The Treasury will match private investors' conversions dollar-for-dollar up to $25 billion.MarketWatch has some details.
The size of the government's new stake will hinge on how many preferred shares private investors agree to convert into common stock. The Treasury's stake is expected to rise to up to 40% of Citigroup, the people said.
Posted by Calculated Risk on 2/27/2009 12:07:00 AM