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Citigroup goes abroad for big Investors

Jan. 12, 2008 at 9:40 AM   |   Comments

NEW YORK, Jan. 12 (UPI) -- Banking sources say China Development Bank is expected to invest nearly $2 billion to help stabilize struggling New York-based giant Citigroup.

Saudi billionaire Prince Prince Alwaleed bin Talal, who invested $590 million in Citigroup in 1991, is expected to join China Development's deal, The Wall Street Journal reported Saturday.

Alwaleed's stake in Citigroup likely will remain below 5 percent to avoid regulatory scrutiny, but given that Citigroup has a stock market value of $140 billion, even a 1 percent stake is a significant sum, the Journal said.

Citigroup hopes to collect $8 billion to $10 billion from a number of investors, including at least one fund affiliated with a foreign government, sources familiar with the deal told the Journal.

Last month, Abu Dhabi's investment arm paid $7.5 billion for a 4.9 percent stake in cash-strapped Citigroup.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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