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Citi Shares Sink Further
Saudi Prince Alwaleed bin Talal bin Abdulaziz Al Saud, who already owns about 4% of the struggling bank, plans to bump up his holdings above 5%.
November 20, 2008
If the intent of one of Citigroup’s largest shareholders was to prop up the ailing stock with a vote of confidence, it hasn’t worked out so well.
Shares of Citi are off another 20% Thursday, on the heels of Wednesday’s 23% shellacking, which marked the biggest percentage decline ever in the shares. Earlier, Dow Jones reported that Saudi Prince Alwaleed bin Talal bin Abdulaziz Al Saud, who already owns about 4% of the struggling bank, plans to bump up his holdings above 5%.
While Citi shares got a brief boost on the news, they have sunk as the trading session has progressed, and now change hands at just $5.11. As part of his statement emailed to Dow Jones, the Prince also expressed confidence in embattled Citi CEO Vikram Pandit.
The Prince has been a Citi shareholder for nearly 20 years.
Aside from the stunning pullback in its share price, it’s been a busy few days for Citi. The company unveiled a massive cost-cutting plan earlier in the week, including a plan to reduce its workforce by about 50,000.
The company said yesterday it was buying up the remaining assets of its structured investment vehicles for $17.4 billion, and recently defended its Chairman, Sir Win Bischoff, amid reports the board was losing confidence in his leadership.
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