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And what will the US taxpayer get for this preferred stock conversion? 40% of the company for some of its $45 billion of preferred, say reports. The reports add that Citigroup's goal here is to keep the US's ownership under 50%, so this won't be a de facto nationalization.
Citigroup negotiates bailout by Saudi prince, Chinese bank
Prince Alwaleed bin Talal is poised to once again come to the rescue of Citigroup Inc.
This time, the Saudi billionaire is expected to be joined by other investors, including the China Development Bank, people familiar with the matter said.
While it isn't clear how much Prince Alwaleed will invest, the Chinese entity is expected to invest roughly $2 billion, one person said. Prince Alwaleed's total stake in Citigroup is likely to remain below 5% in order to avoid regulatory scrutiny. However, given that Citi has a stock-market value of $140 billion, even a 1% stake would end up being a significant sum of money.