Citi to sell stake to Abu Dhabi group
Friday, 30 November 2007
NEW YORK, Nov 29 (Reuters): Citigroup is selling up to 4.9 per cent 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. Many investors feared Citi would have to cut its dividend to boost its capital base.
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. Many investors feared Citi would have to cut its dividend to boost its capital base.