Reports Billionaire Carlos Slim Accumulates 26M Share Stake in Citi (C)
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According to reports from AFP, a investment firm owned by Mexican billionaire Carlos Slim owns around 26 million shares of Citigroup (NYSE: C), which on Monday was rescued by the U.S. government. The stake is worth about $150 million, based on Citi's current market price.
On CNBC, Michelle Caruso Cabrera provided more color on this. She said some of the shares are owned on behalf of clients but the position also includes Slim's personal interest. She also said Slim does not have an interest in buying Banamex from Citigroup. Banamex is the second largest bank in Mexico and there has been recent speculation Citi would sell it, with Slim mentioned as an obvious buyer.
On Monday, Citi (NYSE: C) reached an agreement with the U.S. Treasury, the Federal Reserve Board, and the FDIC to strengthen the embattled bank. . The U.S. Treasury will invest $20 billion in Citi preferred stock under the TARP. The government will guarantee $306 billion of Citi assets for another $7 billion in preferred stock. Citi will issue warrants to the U.S. Treasury and the FDIC for approximately 254 million shares of the company's common stock at a strike price of $10.61. Citi also agreed not to pay a quarterly common stock dividend exceeding $0.01 per share for three years.
On CNBC, Michelle Caruso Cabrera provided more color on this. She said some of the shares are owned on behalf of clients but the position also includes Slim's personal interest. She also said Slim does not have an interest in buying Banamex from Citigroup. Banamex is the second largest bank in Mexico and there has been recent speculation Citi would sell it, with Slim mentioned as an obvious buyer.
On Monday, Citi (NYSE: C) reached an agreement with the U.S. Treasury, the Federal Reserve Board, and the FDIC to strengthen the embattled bank. . The U.S. Treasury will invest $20 billion in Citi preferred stock under the TARP. The government will guarantee $306 billion of Citi assets for another $7 billion in preferred stock. Citi will issue warrants to the U.S. Treasury and the FDIC for approximately 254 million shares of the company's common stock at a strike price of $10.61. Citi also agreed not to pay a quarterly common stock dividend exceeding $0.01 per share for three years.
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