The big news on Citigroup (C) came at the very end yesterday of Pershing Square’s Bill Ackman’s talk at the Ira Sohn Investment Research Conference in New York yesterday, as Ackman said he’d purchased 150 million shares of Citi, but didn’t have time to talk about it, New York Times’s DealBook notes.
That has helped push up the shares of Citi by 15 cents, or 4%, to $4.01 this morning.
Ackman’s position is helping to offset the announcement by the U.S. Treasury Department after market close yesterday that it had completed a sale of 1.5 billion shares of Citi stock through Morgan Stanley (MS), for gross proceeds of $6.2 billion.
That would seem to imply an average price of $4.13 per share.
That leaves Treasury with 6.2 billion shares of stock, of which it has authorized Morgan Stanley to sell another 1.5 billion “under certain parameters.”
The Treasury said back on April 26 it would use Morgan to sell its stake in Citi from time to time. Citi shares have fallen 13% since that announcement.
No comments:
Post a Comment