The US Department of Treasury plans to sell its 27 per cent stake in Citigroup Inc, says a media report. The stake selling is part of a programme of regularly scheduled sales.
Attributing to people familiar with the matter, the 'Wall Street Journal' said, "The Treasury Department is exploring plans to sell its 27 per cent stake in Citigroup in a programme of regularly scheduled sales."
The move is likely to ease investor worries that the US government might sell some of its 7.7 billion shares through a big negotiated block sale at a discount to the market price, the report said citing an analyst at Sandler O'Neill & Partners LP Jeffrey Harte.
According to Citigroup's annual report, the Treasury also owned $5.3 billion of Citigroup trust-preferred securities and warrants to buy 465.1 million shares as of December 31.
The US government acquired the securities in 2008 and 2009 as part of its efforts to stabilise the shaky financial system.