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GIC sells 4.5% Citi stake

Once bitten , twice shy. Long term investment (especially in US companies) is not in GIC's card any more.    They  better sell now rather than be sorry later on.  In veiw of the depareciating US$ value, they are not making much , arent they?

nickyng      ( Date: 22-Sep-2009 17:46) Posted: SINGAPORE - The Government of Singapore Investment Corp (GIC) said on Tuesday it has cut its stake in Citigroup to below 5 per cent through open market sales. GIC held more than 9 per cent of Citi on Sept 11, when it converted its preference shares in the U.S. bank to ordinary shares at $3.25 per share. 'A stake below 5 per cent reflects GIC's goals and desire to be a portfolio investor,' the Singapore sovereign wealth fund said in a statement. 'GIC will continue its investment in Citigroup as we are confident of its long-term prospects,' it added.

 

http://www.guardian.co.uk/business/2009/nov/26/double-dip-recession-dubai-debt

Fears of double-dip recession grow as Dubai crashes

Debt crisis in millionaires' playground could herald new phase in global financial meltdown

FTSE 100 index of leading shares dropped more than 170 points – wiping £44bn off their value.

The market turmoil – which saw jittery investors retreat to the traditional safe havens of bonds, the Swiss franc and the US dollar – followed news that the government-owned conglomerate Dubai World had asked its creditors for a six-month debt moratorium.

http://www.standardchartered.com/media-centre/business-and-strategy/recent-deals/en/index.html

 

http://money.cnn.com/2009/11/27/news/companies/Dubai_bank_risks/index.htm

Dubai's threat to U.S. banks

Although there's little direct exposure to Dubai World's default risk, U.S. financial institutions could take major indirect hits.

New York-based Citigroup (C, Fortune 500) has the most exposure to default risk at Dubai World, which a J.P. Morgan (JPM, Fortune 500) equity research note estimated at $1.9 billion. Citigroup declined to comment.

 

Good move for us who buy Citi as retail players. When the giants start to give away some bread, we can be hopeful to get some crumbs. Hehehe.

Hulumas      ( Date: 22-Sep-2009 18:13) Posted: Selling CITI............. Good move. I suppose. shplayer      ( Date: 22-Sep-2009 17:51) Posted: So much for Loong term investment. They are buying/selling like traders. Next thing you know, they will be shorting like nicky.

 

how much does GIC bought the "preferred shares"? Is the conversion of "preferred share" to "ordinary share" at the same par value? anyone please enlighten?

 

Selling CITI............. Good move. I suppose.

shplayer      ( Date: 22-Sep-2009 17:51) Posted: So much for Loong term investment. They are buying/selling like traders. Next thing you know, they will be shorting like nicky.

 

So much for Loong term investment. They are buying/selling like traders. Next thing you know, they will be shorting like nicky.

 

SINGAPORE - The Government of Singapore Investment Corp (GIC) said on Tuesday it has cut its stake in Citigroup to below 5 per cent through open market sales.

GIC held more than 9 per cent of Citi on Sept 11, when it converted its preference shares in the U.S. bank to ordinary shares at $3.25 per share.

'A stake below 5 per cent reflects GIC's goals and desire to be a portfolio investor,' the Singapore sovereign wealth fund said in a statement.

'GIC will continue its investment in Citigroup as we are confident of its long-term prospects,' it added.