Citi Set to Complete Preferred Exchange

(Updated with analyst comments, additional details on reverse stock split and closing stock price)

NEW YORK (TheStreet) -- Citigroup (C Quote) shareholders approved the final step allowing it to complete its preferred-to-common stock exchange, ending a six-month ordeal that wreaked havoc on the stock's trading.

Citi said in a release Thursday that shareholders agreed to a proposal that will allow the company to increase the number of authorized shares of common stock to 60 billion, up from 15 billion. The move will give the company room to maneuver above its current number of shares outstanding as it completes the exchange, which was first announced in February.

The increase in shares of common stock allows Citi to complete its exchange offer with the U.S. government and certain private holders by swapping the interim securities they received on July 23 for common stock. The conversion will be effective at the close of business on Sept. 10, Citi says. ...