Citigroup is putting the final touches to its second big capital-raising effort in as many months, seeking up to $14bn from Chinese, Kuwaiti and public market investors.Under the proposal being discussed, the bulk of the money - roughly $9bn - would be most likely to come from China, people familiar with the negotiations say. The Kuwait Investment Authority would contribute about $1bn, while $2bn to $4bn would be raised through a public placement of shares.The formula is still being adjusted and there could be last-minute changes, the people involved say. It is also possible other investors will participate.The deal underscores the depth of the problems faced by banks that suffered heavy losses in the US subprime mortgage crisis. It would follow an injection of $7.5bn into Citigroup by the Abu Dhabi Investment Authority in late November."The second round is going very well, because Citi is seen as US Inc," says the regional head of a US investment bank in the Middle East. Citi declined to comment.
Citigroup is putting the final touches to its second big capital-raising effort in as many months, seeking up to $14bn from Chinese, Kuwaiti and public market investors.
Under the proposal being discussed, the bulk of the money - roughly $9bn - would be most likely to come from China, people familiar with the negotiations say. The Kuwait Investment Authority would contribute about $1bn, while $2bn to $4bn would be raised through a public placement of shares.
The formula is still being adjusted and there could be last-minute changes, the people involved say. It is also possible other investors will participate.
The deal underscores the depth of the problems faced by banks that suffered heavy losses in the US subprime mortgage crisis. It would follow an injection of $7.5bn into Citigroup by the Abu Dhabi Investment Authority in late November.
"The second round is going very well, because Citi is seen as US Inc," says the regional head of a US investment bank in the Middle East. Citi declined to comment.
Or is it some long-term political consideration of ignoring the financial pain in order to be able to apply direct pressure on US foreign policy where it hurts ? keep to the Fen Causeway
