Shares in Citigroup drop

2 November 2007

Citigroup has seen its share price fall after concerns were raised that it may be planning a dividend cut.

Analyst Meredith Whitney, of CIBC World Markets, downgraded Citigroup's shares to Sector Underperformer, down from Sector Performer, on the basis that a dividend cut could be moving closer.

The move came because it is thought that Citigroup is looking to raise capital and as a result will cut its dividend payout.

The result of the change in status resulted in Citigroup's shares dipping by 76 cents on Thursday, to finish at $40.60.

Last month Citigroup announced that its profits fell by 57 per cent during the third quarter of this year, blaming the problems in the consumer credit and housing markets for the dramatic dip.

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