Citigroup declines on plan for US$3 billion share sale


Bloomberg

NEW YORK — Citigroup Inc., the biggest U.S. bank by assets, fell in German trading after the company announced plans to sell US$3 billion of stock to increase capital depleted by writedowns on subprime-related mortgages and bonds. The shares will be sold in a public offering, New York-based Citigroup said in a statement yesterday. Citigroup declined 2 percent to US$25.72 in Germany.

The shares have dropped 11 percent this year.

“We were hoping they wouldn’t have to go the equity markets like this,” said William Fitzpatrick, an analyst at Optique Capital Management in Racine, Wisconsin, which held more than 550,000 Citigroup shares at the end of last year.