The U.S. Department of the Treasury announced its continued sale of its holdings of Citigroup (C) common stock. Treasury said that it has entered into a third pre-arranged written trading plan under which Morgan Stanley, as Treasury's sales agent, will have discretionary authority to sell 1.5 billion shares of Citigroup common stock under certain parameters. Treasury currently owns about 5.1 billion shares of Citigroup common stock and expects to continue selling its shares in the market in an orderly fashion.
Because Treasury will not sell shares during the blackout period set by Citigroup in advance of its third quarter earnings release, which period is expected to begin on October 1, this third trading plan will terminate on September 30 even if all shares have not been sold by that time, Treasury said.
Treasury received 7.7 billion shares of Citigroup common stock last summer as part of the exchange offers conducted by Citigroup to strengthen its capital base. Treasury exchanged the $25 billion in preferred stock it received in connection with Citigroup's participation in the Capital Purchase Program for common shares at a price of $3.25 per common share.
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