| From WSJ: Abu Dhabi Investment Authority is set to pay its first bill of misery to Citigroup Inc. Because of an investment deal struck two years ago, early in the financial crisis, the United Arab Emirates' sovereign fund will soon start purchasing $7.5 billion in Citigroup shares at $31.83 apiece, even though the New York bank's stock closed at $4.10.
The value of Abu Dhabi's investment will ultimately be shaped by the price of Citigroup's stock come March. But it seems very likely that "one of the world's...most sophisticated equity investors," as Citi crowed of Abu Dhabi when it inked the complex deal, will soon overpay for the stock of a bank that has fallen into the arms of the U.S. government.................................Full Article: Source
|