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.