Treasury Prices Last of Citigroup Stake
NEW YORK (
) -- The U.S. Treasury has reached terms on the sale of the remainder of its stake in
Citigroup
(C) - Get Report
, pricing the final 2.4 billion common shares at $4.35 each.
"By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid future risk," said Tim Massad, The Treasury's Acting Assistant Secretary for Financial Stability, in a statement. "With this transaction, we have advanced our goals of recovering TARP funds, protecting the taxpayer, and getting the government out of the business of owning stakes in private companies."
The Treasury estimates that, upon completion of this offering on Dec. 10, it will have reaped a profit of $12 billion on its TARP investment of $45 billion in Citigroup. The profit reflects interest and dividend payments and profits on the sale of a total of 7.7 billion Citigroup common shares, which it owned at $3.25 per share.
The Treasury said its average selling price for the Citigroup shares is about $4.14 per share. Its first round of sales consisted of unloading 5.3 billion shares through at-the-market sales at an average price of $4.05 per share.
Citigroup shares closed Tuesday at $4.62, up nearly 4%. Year-to-date, the stock has advanced more than 34%.
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Written by Michael Baron in New York.
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