Citi Cedes to Feds, as Rivals Break Free

As part of the tax plan, Citi declared a dividend of "one preferred stock purchase right" for each outstanding common share as well as interim securities, which are the securities issued in connection with the exchange offers.

These so-called rights will be triggered if any person looks to acquire more than 5% of Citi's stock. It entitles a holder to purchase stock at a 50% discount to the then market price of the common stock.

The plan will be in effect until June 2012, the company said. It does not apply to any share purchases by the U.S. government.

Citi shares recently were rising 3.5% to $3.53.

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