Citigroup Inc. (NYSE: C) has come out tonight saying it will sell some $3 Billion in common stock. Citi claims that after its last $6 Billion, this $3 Billion would take its Tier One capital ratio to 8.5% as of March 31, 2008. Since when do companies get to retro-act dates like that?
The company is underwriting its own offering.
While it is good that the company is able to raise funds this easily, and while the worst implosion fears at least appear behind us, this is just one more bit of further evidence that Citi and probably a dozen other of the behemoth former financial leaders are not totally out of the woods yet and that they might not all be entirely finished tapping the liquidity well again.
Citigroup already closed down 1.8% today at $26.32, and it is down about 3% at $25.50 in after-hours trading.
Jon C. Ogg
April 29, 2008