: WSJ Print
Tags: Citigroup | GIC
Monday, 23 February 2009 21:37
smaller text tool icon medium text tool icon larger text tool icon
GIC has no current plans to convert the preferred shares it owns in Citigroup Inc. into common stock, two people familiar with the situation said Monday to the Wall Street Journal. "If GIC is to convert into common stock, the deal must be sweetened quite a lot. They want to make sure that their return will be equal or above the coupon," one of these people said. GIC and Citigroup both declined to comment, reported the newspaper.
The dilemma for sovereign wealth funds with stakes in US financial institutions arose as it emerged that the U.S. government is finalising the taking of direct stakes in banks like Citigroup Inc. Elsewhere in Asia, banking regulators will likely look closely at the impact of a partial nationalization on banking units partly or wholly owned by Citigroup. And for Citi units in Asia, some of which were recently recapitalized by the parent company, the question will be whether those fresh funds will now flow back to the U.S. as the cash-strapped lender moves to pare back its presence overseas, reports the Journal.
In the same report, the Journal also said that Citigroup officials hoped to persuade such private investors as the Government of Singapore Investment Corp., Abu Dhabi Investment Authority and Kuwait Investment Authority to follow the U.S. government's lead in converting some of their stakes into common stock. That would further bolster an increasingly pivotal measure of banks' capital known as tangible common equity.
For Singapore's GIC, which earns an annual coupon of 7% on its preferred stock, converting its holding into common stock doesn't remove the risk of being diluted or wiped out if Citigroup needs another capital injection or is nationalized by the U.S. government.
In January 2008, GIC invested US$6.88 billion in convertible preferred securities of Citigroup, which at the time would have given it a 4% stake in the bank if converted to common stock. According to a Securities and Exchange Commission filing late last month, GIC now owns a beneficial 5.3% stake, or 303.8 million shares, in Citigroup. These include preferred shares that can be converted into 261.1 million common shares. Based on Citi's US$1.95 closing price Friday, the stake is worth US$592.4 million.
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2009
(659)
-
▼
February
(69)
- 短线观点:“二次探底”
- 水之轩等销售报捷 发展商趁胜出击抢客
- 中国航油年净利增14%
- 怎樣才能激活房地產市場
- US nationalisation of banks - an update
- GIC does not plan to convert Citigroup preferred s...
- 龔方雄:中國經濟V型反彈!
- 李总理:全球衰退远超想象 今年经济将格外艰难
- 股市本周走势 料续受美国影响
- 末日博士:黑暗中仍有投资亮点
- 复苏在望 “本轮经济调整2009年一季度见底”
- 上海一、二手房價倒掛波及內環
- 只有459万元 创业季度净利大跌94%
- SAP's Sticky Situation
- 道瓊周二大跌近300點 參考美股 戒心不可少
- 王石稱房地產調整遠未結束 金融危機影響才開始(圖)
- 陶冬:中國 會是世界第一個復甦的地方 買中國
- Luxury condo prices dive in KL
- 最大交易基金持有量创新高 黄金成资金避险工具
- 炒家出现 Alexis一些单位可能归还发展商
- Some Alexis buyers offer units in subsale market
- 22年来最大跌幅 上月非石油出口挫35%
- 昨再跌42点 海指逼近去年10月低位
- Property players look beyond black January
- 上海經適房選址敲定近郊 商品房價可能再降3成
- 政府拟吸引更多人 加入“红牌车”行列
- 长途配套优惠多 旅游展意外大热
- 製作自己的「賺錢筆記」副標:讓失敗變有用 抓住下一次機會
- 国会报道 新年度拥车证配额将锐减24%
- 汇丰亚太行政总裁: 亚洲经济将首先复苏
- 新航(SIA)
- Alexis: Developer offering discounts of 28% at con...
- Phase 1 of Circle Line to open on May 30
- 黄金指数 (芝加哥商品交易所)
- Launch of 6 more condos likely in next few months
- 分别配售附加股 嘉德与嘉茂商托股价一涨一跌
- 跌幅低于国际水平 淡马锡投资净值跌31%
- To refinance or not to refinance?
- One Shenton @ Shenton Way
- One Amber
- Some prime projects trading lower
- 上海樓市頻現退租潮 高檔二手房降價走向明朗
- Rights issues to pad up CapitaLand, CMT war chests
- 经纪到邻近组屋区发请柬 Caspian公寓两天卖80单位
- 金融海啸房价缩水 本地楼价仍高居全球第八位
- 黄金价格步步高
- 海峡时报指数(STI)
- 辉立交易员:海指正处缓慢上升势头
- 14幸运儿分享 1025万元多多红包
- Caspian公寓周末推出 售价较高峰期锐减近半
- 後市堪憂 香港地產股連番下挫 4大富豪買自家股份護盤
- 永慶房屋:上海一手房存量高達842萬平方米 今年降價埋下伏筆
- 中國物流與採購聯合會公佈1月採購經理人指數為 45.3
- 澳洲政府公佈415億澳元(261.9億美元)的經濟振興方 案
- 潛在供應量大上海房價壓力驟增
- 牛年開鴻運、十二盞財神燈
- DTZ Research says property inventory may take 5.5 ...
- 千万多多新春大奖周五开彩 昨晚开始接受投注大排长龙
- 謝金河:「牛轉乾坤」都是好年 台股將先苦後甘,漸入佳境
- 中国国务院紧急叫停重庆购房退税政策
- 美国道琼斯工业指数
- 明年后新私宅过多现象 料因政府伸援手而缓和
- En bloc units being rented out at half price
- Resale flats going below valuation
- 中国约两千万失业农民工返乡
- 海峡时报指数(STI)
- 直落古楼公寓 牛年抢先登场
- 我国就业情况急速恶化
- 让你受益终生的饮食习惯
-
▼
February
(69)
No comments:
Post a Comment