Saudi Prince, Chinese Bank to Back Citigroup

Foundering US giant will get billions from foreign investors
By Will McCahill,  Newser Staff
Posted Jan 11, 2008 6:02 PM CST
Saudi Prince, Chinese Bank to Back Citigroup
A Citibank office is shown on Tuesday, Nov. 27, 2007 in New York. The Abu Dhabi Investment Authority will invest $7.5 billion in Citigroup, offering the nation's largest bank needed capital to offset big losses from mortgages and other investments. (AP Photo/Mark Lennihan)   (Associated Press)

A Saudi prince and one of China's government banks are expected to invest billions in Citigroup, the Wall Street Journal reports today. The China Development Bank is expected to pump in $2 billion, sources said; the amount billionaire Prince Alwaleed bin Talal would front is yet to be determined, but would need to be below 5% of Citigroup's $140 billion value to avoid regulatory issues.

Citigroup, facing a $15 billion fourth-quarter write-down as a result of the mortgage crisis, is no stranger to foreign investment, having taken $7.5 billion from Abu Dhabi's investment arm last month. The bank is hoping to raise $8-$10 billion overall from investors; the deals with Alwaleed and the CDB aren't yet official and could still fall apart, the Journal notes. (More Alwaleed bin Talal stories.)

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