ADVFN - Advanced Financial Network.
HOME» NYSE » C » GIC Stock Price » GIC Stock News

Capital Protected No Share News

 Capital Protected No Stock Price
GIC Stock Price
 Capital Protected No Stock Chart
GIC Stock Chart
 Capital Protected No Stock News
GIC Stock News
 Capital Protected No Company Information
GIC Company Information
 Capital Protected No Stock Trades
GIC Stock Trades

CORRECT: Citigroup To Give 36% Stake To US Government

("AT A GLANCE: Citigroup To Give 36% Stake To US Government," published at 11:12 a.m. EST, incorrectly said in the first paragraph that Citigroup plans to convert $52.5 billion in preferred shares into preferred shares. The correct version follows.) THE EVENT: Banking giant Citigroup Inc. (C) Friday took steps to convert $52.5 billion in preferred shares, including up to $25 billion held by the U.S. government. The move gives Citi much-needed capital but wipes out nearly three-quarters of existing shareholders' stake. Citi's shares hit their lowest level since November 1990, pulling banking stocks lower and the broader market into the red. WHAT IT MEANS: This is the third time since October Washington has delivered aid to Citigroup. The move is an acknowledgment that more than $50 billion in government capital and a backstop on more than $300 billion in troubled Citigroup assets haven't been enough to stop the bank's slide. THE DETAILS: Citigroup offered to convert up to $25 billion of the government's preferred stock and nearly $27.5 billion of preferred stock in private hands. Shareholders will have to approve much of the common stock issuance. The exchange, if fully executed, would leave the government with 36% of Citigroup's shares; existing shareholders' stake would decline to 26%. The Treasury will convert preferred stock into common shares only if other preferred-stock holders also do so. Holders including Government of Singapore Investment Corp. and longtime shareholder and Saudi Prince Alwaleed Bin Talal have said they'll participate in the exchange. The conversion rate for swapping the preferred stock to common shares is $3.25, a 32% premium to Thursday's closing price. CITI EXECS SPEAK OUT: Citigroup Chief Executive Vikram Pandit and Chief Financial Officer Gary Crittenden reassured investors that the bank's capital is strong enough to get through the financial crisis. However, Crittenden said Citigroup received no word on whether the stock switch would let Citi pass the Obama administration's "stress tests" for future government aid. The "stress test" requires certain capital ratios. OTHER CITI MOVES: Citigroup's board soon will include a majority of new independent directors. Pandit is expected to keep his job. The company plans to record $10 billion in write-downs for the fourth quarter, boosting the full-year 2008 net loss to $27.7 billion. Citigroup also is suspending quarterly dividend payments on common shares, which already had been slashed to 1 cent. MARKET REACTION: Shares of Citigroup recently declined 31% to $1.69. Other banking stocks were also down, notably Bank of America Corp. (BAC), off 15%. The Dow Jones Industrial Average dropped 77 points to 7105, the S&P 500 declined 11 points to 742, and the Nasdaq Composite fell 6 points to 1386. Citigroup's senior bonds are performing better, with estimates on the drop in risk premiums over comparable Treasury yields ranging from 15 basis points to 20 basis points. The annual cost of protecting Citi's senior bonds against default for five years, a key gauge of creditworthiness, dropped by $35,000 to $360,000. "This places a significant layer of common equity below you, with a government who appears to be interested in keeping the institution afloat," said a corporate bond portfolio manager. European credit derivative indexes are under renewed pressure. Credit markets reacted negatively, widening further from opening levels. For more coverage, please see: =Citi To Give US 36% Stake In Effort To Boost Equity =GIC Converts Preferred Citi Stock Into Common Shares =Eurobonds: CDS Indexes Widen Sharply After Citigroup Deal =Bond Investors Like Citi Plan So Far But Remain Uncertain =Citi:No Guidance From Regulators On Common Equity Ratio (Compiled by Lisa Reynolds, Dow Jones Newswires; 201-938-5138; lisa.reynolds@dowjones.com)

Stock News for Capital Protected No (GIC)
DateTimeHeadline
10/14/201414:26:11CICC Chief Levin Zhu Steps Down; IPO Delayed
10/14/201405:21:25China International Capital CEO Levin Zhu Resigns
10/14/201402:10:25CICC CEO Levin Zhu Resigns
08/22/201412:00:09Avolon Pursues IPO as Sale Talks Continue
07/14/201401:30:20China's CICC Prepares for Hong Kong Listing
01/16/201414:30:42Time Warner Sells Manhattan Office Space for $1.3 Billion
01/16/201414:15:08Time Warner Sells Manhattan Office Space to Related for $1.3...
10/22/201309:00:50Goldman Sachs to Sell Majority of European Insurance Unit
10/22/201308:48:17Goldman Sachs Agrees to Sell Majority of European Insurance Unit
09/06/201316:29:09Singapore's GIC, Blackstone May Buy Stakes of About 30% Each...
06/18/201301:40:06EQT, GIC to Sell Springer Science to BC Partners
05/10/201313:40:06Neiman To Court Sovereign Wealth Funds
03/13/201303:44:31Snam Sees Flat 2013 Dividend While Policy to Remain Attractive
01/15/201313:37:13Two Final Bidders Left for Total's TIGF Unit - Sources
01/10/201321:20:13U.S. Wants Resort Sale Postponed to Clear Up Tax Issue
01/10/201314:28:07U.S. Wants Resort Sale Postponed to Clear Up $331 Million Tax...
11/04/201219:24:30China Pacific Insurance Gets Green Light for H-Share Private...
10/16/201211:17:26Springer Science + Business Explores Sale, IPO, Hires Banks -Sources
09/09/201220:16:06China Pacific Insurance: To Raise Around HK$10.395 Billion Via...
08/31/201203:08:44Generali To Draw Interest For 2 Divisions On Sale - Report

Capital Protected No and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad