The US govt bailout of Citigroup allows them to pay only 1% dividends to common shareholders.
If Citigroup still pays out dividends to GIC (7%), Singapore will get its principal back in 14 years. If no dividends is given out, our Citigroup stake is quite worthless because the convertible price is too high.
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Published November 25, 2008
US govt rescue dilutes GIC's Citi stake However, GIC's rights and dividends from preferred shares still unclear.
By CONRAD TAN (SINGAPORE) The US government's massive capital injection into Citigroup will dilute the Government of Singapore Investment Corp's earlier investment in the bank, although it was unclear yesterday whether the bailout would trigger any changes in GIC's rights or a cut in the dividend that it receives. When contacted, GIC declined to comment.
Wednesday, November 26, 2008
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6 comments:
it's 1 cent per share per quarter, not 1%.
most likely they get close to zero.
bo liao
pls direct queries to aje saigal of eqd
Citigroup ? Should be called CitiCorpse now.
Article is very good. Today the age of communication & this article is very helpful for communicators.
sgx dividend stocks
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