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To: Perspective who wrote (196183)	4/13/2009 9:34:17 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 306849

The original plan called for conversion of up to 25B of convertibles into common stock at $3.25; government matching first 20B of conversion. This would mean that the original citi common stock is diluted by 74%. GICs 11.1% stake would, at 3.25 be worth 6.88B USD (+accrued interest). So at $4, the Market Cap would be about 76.4B for about 19.1B common shares (the other calculation using the US governments shares yields approximately 21.3B common shares then outstanding. Currently, C shows 5.48B shares out). At $10, Citigroups market cap would be well over 200B. channelnewsasia.com GIC converts preferred notes in Citigroup to common shares By May Wong, Channel NewsAsia \| Posted: 27 February 2009 2026 hrs SINGAPORE: The Government of Singapore Investment Corp (GIC) has said it will convert its convertible preferred notes in the US lender Citigroup to common stock in a bid to help shore up the troubled US lender. The exchange price is US$3.25 a share – a 32 per cent premium to Citigroup's closing price on Thursday. The price is way under the conversion price of US$26.35 a share under the original terms of the investment. With the conversion, GIC's stake in Citigroup will rise to an estimated 11.1 per cent, without any injection of additional funds. In January 2008, the Singapore sovereign wealth fund bought about US$6.88 billion worth of perpetual, convertible notes in Citigroup. These preferred stocks would pay a 7 per cent annual dividend. Preferred shares are similar to bonds in that holders receive a fixed dividend. By getting preferred shareholders like GIC to convert their holdings into common stock, Citi will be able to reduce its quarterly dividend payment. The US Treasury Department has said it will convert part of its holdings of preferred shares into Citigroup common stock. So too will some other large preferred stockholders, including Saudi Arabia's Prince Alwaleed Bin Talal Abdulaziz Alsaud. In a statement, GIC said it supports the initiative by Citigroup and the US government to strengthen the quality of the bank's capital base in view of the challenging economic environment. The US government will now take a US$25 billion stake in troubled Citigroup, with the conversion of its preferential stock into ordinary shares. [that stake to be est. 36%] Separately, Citigroup has announced it will record another US$10 billion worth of writedowns as part of its already-released fourth quarter results. This brings its net loss for the year to US$27.7 billion. - CNA/so

To: Perspective who wrote (196183)	4/13/2009 9:54:47 PM
From: RockyBalboa	Respond to of 306849

I do not trust those numbers very much. For example I just checked ABK which has, like MBI and other monolines a huge short interest. and see: finance.yahoo.com everything covered. Would the borrower of the 527 shares please stand up? hare Statistics Average Volume (3 month)3: 10,563,600 Average Volume (10 day)3: 8,200,520 Shares Outstanding5: 287.35M Float: 284.85M % Held by Insiders1: 0.44% % Held by Institutions1: 47.70% Shares Short (as of 10-Mar-09)3: 527 Short Ratio (as of 10-Mar-09)3: 0 Short % of Float (as of 10-Mar-09)3: N/A Shares Short (prior month)3: 40.98M or, checkout BAC or JPM and laugh: finance.yahoo.com finance.yahoo.com Share Statistics Average Volume (3 month)3: 105,877,000 Average Volume (10 day)3: 91,896,000 Shares Outstanding5: 3.76B Float: 3.71B % Held by Insiders1: 0.46% % Held by Institutions1: 73.00% Shares Short (as of 10-Mar-09)3: 5.90K Short Ratio (as of 10-Mar-09)3: 0 Short % of Float (as of 10-Mar-09)3: N/A Shares Short (prior month)3: 49.36M