Citi to sell $7.5 bln stake to Abu Dhabi group
Tuesday, 27 November 2007
Citigroup is selling up to 4.9 percent of itself for $7.5 billion to the investment arm of the Abu Dhabi government, giving the largest US bank fresh capital as it wrestles with the subprime mortgage crisis and the resignation of its chief executive. The capital injection will shore up Citi's balance sheet, which has been hurt by some $6.8 billion of writedowns and losses in the third quarter, and the potential for another $11 billion in the fourth quarter.