Citigroups' life insurance unit, Primerica, filed for an initial public offering of up to $252 million as part of Citigroup's plan to shed assets outside its main banking business. Citi expects to sell 18 million Primerica shares to the public and 17.2 million shares to private equity firm Warburg Pincus, plus warrants. Post-IPO, Citi's stake will be 32%-46%, while Warburg Pincus' stake will be 23%-33%.
On Bloomberg this morning, Citigroup Inc. CEO Vikram Pandit said the Treasury Department will be free to sell its 27% stake in the bank starting next week and that he “wouldn’t be surprised” if the government were considering a sale. “I wouldn’t be surprised if they would actively think about something,” given where the stock is trading, he said.
The stock closed yesterday @ $ 4.18. The past few days have seen massive volume, an average of 1.2 billion shares. The Treasury was caught napping last October when the stock traded @ $5.00. They could have made a move to sell it all then, for a $13 billion profit!
Citigroup Inc. has named former Mexico President Ernesto Zedillo to its board of directors. Citigroup also said former AT&T Inc. executive Michael Armstrong and Xerox Corp. Chairman Anne M. Mulcahy won’t stand for re-election at the annual shareholder meeting on April 20, Citigroup said today in a statement.
The Citigroup board overhaul continues.
Barclays Bank PLC announced it has agreed to acquire the Italian credit card business of Citibank International Bank PLC. Barclays will acquire 197,000 credit card accounts and gross assets of EUR234 million of which substantially all relate to receivables.
Barclays plans to integrate business and its employees into its existing Barclays Italy business, part of global retail and commercial banking, Western Europe division. Over time, Barclays intends to rebrand acquired credit cards with global Barclaycard brand.
CitiGroup’s foreclosure prevention program, Citi Homeowners Assistance Program has, as of third-quarter reports, helped 130,000 homeowners who were in trouble with their mortgage and has helped over 40% of those homeowners who qualified for the Making Home Affordable Program.
One of the more recent stories about CitiGroup came around the Holidays where CitiMortgage suspended foreclosures for one month to allow homeowners to keep their homes and abstain from the stresses of foreclosure over the Christmas season.
Bain Capital Partners LLC announced that it has completed the acquisition of BELLSYSTEM24, Japan's call center operator, from Citigroup Capital Partners Japan Ltd., a subsidiary of Citi.
On November 14, 2009, Citigroup Capital Partners Japan Ltd. had entered into a tender offer agreement with an affiliate of Bain Capital under which it received cash consideration for its 93.5% stake in BELLSYSTEM24. The total transaction was valued at approximately JPY100 billion (equivalent to USD1.1 billion).
Bank of Montreal announced that it has completed the acquisition of the Diners Club North American franchise from Citigroup.
This acquisition was announced on November 24, 2009. The purchase also includes the Club Rewards program and the Professional Card portfolio.
Citigroup received notice from the federal government that they will not be subject to rulings from the Treasury Department’s paymaster Kenneth Feinberg in 2010.
Citigroup paid back $20 billion of the total $45 billion in aid that it received from TARP, meaning that it is no longer receiving “exceptional assistance” and is no longer receiving the type of aid that would warrant the paymaster’s oversight, according to a letter issued to Citigroup by the Treasury Department on Wednesday.
According to a regulatory filing at the end of trading on Thursday, as of March 2011, Citibank will no longer provide financing for the credit cards of Zale with sales continuing to plunge for the specialty jewelry retailer.
Zale hasn’t been able to stop the continuing loss in market share it has been experiencing for years, and the drop in November sales of 18.6% has generated a lot of conjecture and buzz on what the future holds for the company, as the majority of its sales and profits are experienced over the final three months of the year.
Citi Wednesday announced the pricing of 5.4 billion common shares and 35 million tangible equity units as part of its agreement with the U.S. government and its regulators to repay U.S. taxpayers for the $20 billion the government holds in TARP trust preferred securities and to terminate the loss-sharing agreement with the government. The common stock priced at $3.15 per share, generating net proceeds of approximately $17 billion. The tangible equity units priced at $100 each, generating net proceeds of approximately $3.5 billion (about $2.8 billion counted as equity.) The combined offering of common stock and tangible equity units is the largest public equity offering in U.S. capital markets history.
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