Wednesday, November 26, 2008

Is GIC's Citigroup dividends still there or not?

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.

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.


Anonymous said...

it's 1 cent per share per quarter, not 1%.

Anonymous said...

most likely they get close to zero.

yh said...

bo liao

Anonymous said...

pls direct queries to aje saigal of eqd

Anonymous said...

Citigroup ? Should be called CitiCorpse now.

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