Skip to main content

Citi Shares May Earn Taxpayers 25%

The Treasury Department indicated that taxpayers may earn more than a 25% return on its $45 billion investment in Citigroup when all the dispositions are complete.

NEW YORK (

TheStreet

) -- The U.S. Treasury Department indicated on Thursday that taxpayers may earn more than a 25% return on its $45 billion investment in

Citigroup

(C) - Get Citigroup Inc. Report

.

The Treasury completed a sale of $2.25 billion in Citi trust preferred securities (TruPS), along with a third block of common shares. To date, the government has regained $41.6 billion worth of its initial $45 billion investment.

The Treasury still holds a 12% stake in Citi via 3.6 billion common shares, valued at $14 billion. There is also another $800 million worth of TruPS held by the Federal Deposit Insurance Corp.

Added all together taxpayers stand to receive $56.4 billion at the current valuations - not including warrants to buy more common shares, which the Treasury has yet to sell.

"Treasury expects to continue selling its shares in the market in an orderly fashion, after the blackout period set by Citigroup related to its third quarter earnings release ends," the government said in a statement.

Citi closed down 0.3% at $3.91, but was rising 1% to $3.95 in after-hours trading.

TheStreet Recommends

-- Written by Lauren Tara LaCapra in New York

.

>To contact the writer of this article, click here:

Lauren Tara LaCapra

.

>To follow the writer on Twitter, go to

http://twitter.com/laurenlacapra

.

>To submit a news tip, send an email to:

tips@thestreet.com

.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.