US Treasury completes sale of 1.1bn Citigroup shares

2 July 2010

The US Treasury has announced the completion of the sale of a further 1.1 billion Citigroup shares.

According to the government, the move is part of a second trading plan following the sale of 1.5 billion shares in the investment bank in May.

The previous sale accounted for nearly 20 per cent of the total Citigroup shares owned by the authorities and raised $6.2 million.

In a statement, the Treasury said it “received 7.7 billion shares of Citigroup common stock last summer as part of the exchange offers conducted by Citigroup to strengthen its capital base".

“Treasury exchanged the $25 billion in preferred stock it received in connection with Citigroup's participation in the Capital Purchase Program for common shares at a price of $3.25 per common share.”

The government has sold a total of 2.6 billion Citigroup shares and received $10.5 billion in gross proceeds.

Following the blackout quarter on selling set by Citigroup, the Treasury is expecting to continue with its sale of the 5.1 billion shares it still owns.

Meanwhile, Vikram Pandit, Citi chief executive officer, recently voiced his support for the reforms agreed on by the US government.

He stated: “I have fully supported ending the phenomenon of ‘too big to fail'; and I believe we must have a level playing field– the same rules for everybody and real transparency into financial transactions.”

By Jim Ottewill

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