The Treasury department on Friday said it intends to sell another 1.5 billion Citigroup Inc. (C) shares over the next two months. This will be Treasury’s third pre-arranged phase of Citigroup stock sales, which will begin immediately and end by Sept. 30.
The government has already sold 2.6 billion Citigroup shares in two previous sales and received about $10.5 billion. It still owns 5.1 billion shares and intends to keep selling them in the market “in an orderly fashion.”
Citigroup received $45 billion in bailout money in 2008 and 2009. The New York-based bank paid back $20 billion in preferred shares last December but another $25 billion was converted to common stock last year, giving the government a 27% ownership stake in the company.
Treasury said it plans to sell its entire stake in Citigroup it received in connection with the co.’s participation in the Capital Purchase Program for common shares at a price of $3.25 per share by the end of the year.
Shares of Citi are lower on the session by 1.83%, currently trading at $4.01. The stock hit a low of $3.99 earlier in the day.
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