The U.S. government plans to sell the last property on the rescued giant Citigroup, the Ministry of Finance said Monday. Ministry of Finance said it would hold one-day public auction on Tuesday for the remaining 465 million warrants in the bank.
"The result of this sale will provide an additional return to the American taxpayer from investment in the company's finance department out of receipt of payment of dividends on preferred stock and related benefits received from the sale of common stock and preferred stock," the department said in a statement.
Ministry of finance receive warrants, which give the right to buy the underlying securities, as part of rescue Citigroup 45 billion dollars to help weather the financial crisis of 2008.
The government says not only get back the initial investment in Citigroup, one of the largest banks in the world, but an additional 12 billion dollars in dividends and interest.
Department said Tuesday that the offer is expected to priced through modified Dutch auction. Like the auction set a market price by allowing investors to bid on a certain phases the minimum price set for each auction.
Warrants for two groups of common shares will be offered for sale with a minimum price of 60 cents to 255 million warrants an "A" and 15 cents for 210 million warrants, "B", the Ministry of Finance said. The operation will be handled by Deutsche Bank Securities, a unit of Germany's big banks.
"The result of this sale will provide an additional return to the American taxpayer from investment in the company's finance department out of receipt of payment of dividends on preferred stock and related benefits received from the sale of common stock and preferred stock," the department said in a statement.
Ministry of finance receive warrants, which give the right to buy the underlying securities, as part of rescue Citigroup 45 billion dollars to help weather the financial crisis of 2008.
The government says not only get back the initial investment in Citigroup, one of the largest banks in the world, but an additional 12 billion dollars in dividends and interest.
Department said Tuesday that the offer is expected to priced through modified Dutch auction. Like the auction set a market price by allowing investors to bid on a certain phases the minimum price set for each auction.
Warrants for two groups of common shares will be offered for sale with a minimum price of 60 cents to 255 million warrants an "A" and 15 cents for 210 million warrants, "B", the Ministry of Finance said. The operation will be handled by Deutsche Bank Securities, a unit of Germany's big banks.
About Author
