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’Abu Dhabi reviews Citi investment
Abu Dhabi is assessing its $7.5bn investment in Citigroup as the bank’s problems deepen amid talk of possible nationalisation, reports Reuters. The Abu Dhabi Investment Authority invested $7.5bn last year in Citi through convertible bonds that pay 11% in interest,
Abu Dhabi SWF exits Gatwick race
Six consortiums have submitted bids of up to £2bn for Gatwick Airport, but the Abu Dhabi Investment Authority (ADIA), the world’s largest sovereign wealth fund, is understood to have dropped out, reports The Times.
US urges SWFs to give promises
The US is prodding two of the biggest sovereign wealth funds to embrace a set of promises that they won’t use their wealth for political advantage, reports the WSJ. Executives from the world’s largest SWF,
FT analysis: Silence not necessarily golden for sovereign funds
Sovereign wealth funds are suddenly the capital provider of first and last resort for ailing US financial institutions, investing at least $30bn in some of Wall Street’s biggest banks and brokerages, writes the FT’s Henny Sender in an FT analysis on Friday.
Yau sells top London restaurants
Alan Yau, a top London restaurateur and founder of the Wagamama Japanese food chain, has sold his two exclusive Michelin-stared Chinese restaurants for $60m to funds owned by Abu Dhabi, reports The Times.
Short View: Big is better for the SWF put
The private equity put is no more. Now we must rely on the “sovereign wealth fund put”, says the FT’s John Authers in Wednesday’s Short View column.
A put option confers the right to sell a stock for a fixed price:
Mideast, Asian SWFs put $37bn in financials
Investment funds from the Middle East and Asia have invested an estimated $37bn in shares of western financial companies this year, in a sign the funds are taking a more optimistic view than other investors of growth prospects for banks,
Lex on Abu Dhabi’s Citi move
What does it take to impress the markets these days?, asks Lex. As reported Tuesday, Abu Dhabi Investment Authority is injecting $7.5bn into Citigroup, a bank battered by expected subprime losses, with no permanent chief executive and dogged by investors’ worries that there are more balance sheet challenges ahead.
Abu Dhabi buys into Citigroup
Citigroup announced Monday night it had raised $7.5bn in new capital at a coupon of 11% from the Abu Dhabi Investment Authority in efforts to shore up its overstretched balance sheet. ADIA agreed in the deal not to hold more than a 4.9% stake in Citi and will have no special rights of ownership or control.