Citigroup is pressing for a new capital injection that would raise the US government’s stake in the troubled bank to as much as 40% but stop short of outright nationalisation. The talks come after Citi’s shares fell last week to below $2 on nationalisation fears. A decision is expected within weeks but could come sooner if Citi shares fall further. Citi executives and regulators at the weekend discussed plans for the government and other shareholders to convert up to $75bn of preferred shares into common stock. Citi could also try to raise fresh equity with a public share offering.

This entry was posted by Gwen Robinson on Monday, February 23rd, 2009 at 4:40 and is filed under Capital markets. Edit this entry.