Citigroup shares to be sold by US Treasury

30 March 2010

The US treasury is to sell the 7.7 million shares it currently holds in investment bank Citigroup.

According to the government department, the sale will take place during 2010, dependent on market conditions.

Morgan Stanley is expected to act as capital market advisor in relation to the sale.

The shares were acquired by the Treasury as part of its Troubled Asset Relief Program (TARP) which saw the government take a 27 per cent stake in the financial institution.

In a statement, the government department said: “Treasury intends to sell its Citigroup common shares into the market through various means in an orderly and measured fashion. Treasury intends to initiate its disposition of the common shares pursuant to a pre-arranged written trading plan.

“The manner, amount and timing of the sales under the plan is dependent upon a number of factors.”

Citigroup received $45 million as part of the TARP support.

Meanwhile, the Financial Times reported that Citigroup has boosted its Global Prime Finance Group in London and New York by taking on 13 new staff members.

By Jim Ottewill

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