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Citigroup, ValueAct Capital Reach Information Sharing And Engagement Deal

Citigroup Inc. (C) and ValueAct Capital said that they reached an Information Sharing and Engagement Agreement which will formalize and expand on the constructive dialogue between Citi and ValueAct that began in early 2018.

Citigroup noted that the Agreement enables ValueAct to have access to confidential information about the company and engage with members of Citi's management team and Board of Directors on areas such as strategy, governance and operational planning matters.

The Agreement also provides for ValueAct's support for management and the Board through the term of the Agreement, which lasts through December of 2019.
A representative of ValueAct currently sits on the board of Alliance Data Systems, a competitor of Citi's in certain business lines.

Due to issues around board interlocks of competitors, ValueAct is not pursuing a board seat at Citi at this time. Citi and ValueAct have discussed that when this situation changes, it is likely that ValueAct will propose a candidate for a board seat and Citi would consider the request, following its usual process for director candidates, Citigroup said.

Citi CEO Michael Corbat said, "We have had a very constructive dialogue with ValueAct over the past year. This Agreement will enable Citi to work closely with one of its largest shareholders and one with unique insights and a strong track record of adding value to global organizations..."

ValueAct currently owns approximately 32 million of the issued and outstanding shares of Citigroup common stock and is one of its largest shareholders.

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