Citigroup Inc said Friday, one agreement, which the government of a stake of 36 percent in the bank battle.The government, with other investors are a part of the preference shares into ordinary shares at Citi.
Citi exchange offer of 27.5 billion U.S. dollars of its shares owned by private investors, the price for the conversion of $ 3.25 per share, representing a premium of 32 percent to the closing price on Thursday of 2.46 $. The government is in the amount of $ 25 billion of preferred shares, in the moment, the same price.
If the amount for the conversion of preferred shares, common shares will participate in the autumn in the possession of around 26 percent.
The conversion of Citi, the combination allows for the provision of capital for the continued support for the weakening of the economy.
The Government of Singapore Investment SA, Saudi Prince Alwaleed Bin Talal, Capital Research Global Investors, Capital World Investors are among those who have said that private investors to participate in the exchange.
One of the banks that are most affected by the crisis in international credit markets, Citi has already 45 million U.S. dollars in cash from the government and the guarantees for the protection of the majority of losses of 300 billion U.S. dollar venture.
Under the agreement for the exchange, the U.S. Treasury or by 20 billion U.S. dollars of preferential shares in preferred shares rank higher than the rate of 8 percent of the cash dividend.
Citigroup said that the government does not increase property taxpayers more money. The government currently holds about 8 percent in Citi.
Under the agreement underlines Citi's dividend on common shares and preferred shares.
Citi also reshaping its Management Board, Richard Parsons, president of the bank, said in a statement. The Council has a new majority of independent directors as early as possible, says Parsons.
The company has also said he has an impairment of goodwill of USD 9.6 million due to the deterioration of the financial markets.
The differences in the load was in Citi results during the year 2008 with $ 374 million in connection with the devaluation of Nikko Asset Management. The accusations from Citi in the review in 2008 the loss of 27.7 billion U.S. dollars, or $ 5.59 per share.
Citi's shares fell 56 cents, or 22.7 percent to 1.90 $ in advance of negotiations.
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