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Citigroup heads for reverse stock split
According to Citigroup Inc, it wishes to execute a reverse stock split and also wants to increase its common shares outstanding in order to have a conversion from preferred shares to common shares. In terms with its announcement last month, Citi wants to exchange around $27.5 billion, due to its agreement with the Treasury Department, in different preferred securities such as public and private. This is government’s latest of many trials to save the Citigroup.
Citigroup has also been able to persuade all the holders of preferred securities for the swap. These private holders account for $12.5 billion. It seems that the bank is going to offer the non – convertible preferred and trust preferred securities a chance to exchange the shares at the rate of $3.25 per share. This may take place in April.
Reverse stock split gives the benefit by increasing the earnings per share. The outstanding share of the company will decrease with this move while the value of shares in market will be unchanged.
Citigroup has seen a heavy fall in their share prices and reverse stock split can help them a lot.
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5:57 pm
The Trust of 300 Million Americans Rested on these Banks and Today The common American Sits on a chair and wonders Why he believed? Why He worked 18 hours a week to blow away that money on War?