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.)