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To: Perspective who wrote (196190)	4/13/2009 10:06:49 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 306849

You read it right - in other words the common stock would be diluted to approx 1/4. but I have my doubts now - how real that is: The conversion was heavily touted end of february and the Citi stock would hit $1 on this while the preferreds went up in price according to their new exchange ratio. See here: dailymarkets.com zacks.com >>>>>>>>> Earlier Friday Citigroup announced it will offer to convert into common shares approximately $27.5 billion of its preferred stock sold to public and private investors, and up to $25.0 billion in preferred stock bought by the U.S. government. The U.S. government would have approximately a 36% stake in Citigroup, while existing shareholders would be cut to a 26% stake, if fully executed. <<<<<<<<<<<< Alas, I recently checked SEC filings and I have yet to find registration statements for 15B new C common shares, a prospectus or S-3 registration or something meaningful. But there are hundreds of documents in this year for Citi, from $3B FDIC insured floaters to ownership statements to prospectuses for various structured products. Perhaps I just haven´t found it.

To: Perspective who wrote (196190)	4/13/2009 10:40:52 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 306849

Here - conversion is not off - just let it ride, then short. Message 25503367 Traders say that Citi shares could fall once the exchange offer is complete, which is expected in about a month. That's because of the DILUTION created by the additional common shares. Citi is expected to file information on the exchange offer with the Securities and Exchange Commission in the next few days. In a bid to boost its depleted tangible common equity, Citi announced an exchange offer involving some $25 billion of preferred held by the government under the TARP program, some $12.5 billion of preferred held by a group of private investors, including Saudi Prince Alaweed, and $14.9 billion of publicly held preferred. Citi shares fell sharply in the wake of that announcement, dropping to under $1 from $2.50 as investors banked on massive DILUTION of existing common holders. Citi's shares outstanding are expected to rise to about 22 billion from 5.5 billion once the roughly $52 billion of preferred is converted into common shares. The preferred exchange offer is voluntary but the vast majority of public holders are expected to participate. The Treasury Department also is planning to participate.