Updated to include Citigroup comment, fresh share price additional quote.NEW YORK ( TheStreet) -- The U.S Treasury said Thursday it's reeled in gross proceeds of more than $10 billion so far from its efforts to whittle down its bailout-related stake in Citigroup ( C). The Treasury said in a statement that to date it's sold roughly 2.6 billion shares of Citigroup common stock at an average price per share of $4.03. It has received total gross proceeds of approximately $10.5 billion from the sales, which are being made in the open market through a pre-arranged trading plan being implemented by Morgan Stanley ( MS). The stake is the result of the conversion of preferred stock issued as part of Citigroup's bailout being converted to common shares that the Treasury owns at a price of $3.25 each.
Based on those numbers, the Treasury would have booked a gross profit of roughly $2.03 billion on the sales, which began in late April. Citigroup's stock ran as low as $3.62 earlier in Thursday's session, but has since bounced into positive territory and was up a nickel to $3.81 in recent trades. Volume of 610 million compared to the issue's three-month trailing daily average of 818 million. The Treasury sold approximately about 1.1 billion shares of Citigroup common stock in this latest round of selling, its second. That figure is below the authorization of 1.5 billion shares it gave Morgan Stanley late last month, but Treasury had said at the time that the second program would cease on June 30, regardless if all the shares were sold yet, because of the blackout period set by Citigroup ahead of its second-quarter report on July 16. Treasury received a total of 7.7 billion shares of Citigroup common stock last summer as part of the exchange offers conducted by Citigroup to strengthen its capital base. As part of the plan, the government exchanged $25 billion worth of preferred stock for common stock. The $25 billion in preferred stock was part of the total of $45 billion the government used to prop up Citigroup in late 2008 through the Troubled Asset Relief Program. The company repaid the remaining TARP preferred shares in December. The government still owns approximately 5.1 billion shares of Citigroup stock and expects to continue selling shares in the market following the blackout expiration, it said.