Treasury said it sold about 1.1 billion shares of Citigroup common stock (C 3.80, +0.02, +0.53%) recently. That brings total sales so far to approximately 2.6 billion shares.
The average price of the sales has been $4.03 per share, giving the U.S. government total gross proceeds of about $10.5 billion so far, Treasury reported.
The government got 7.7 billion shares of Citigroup common stock last summer, the result of several bailouts of the financial-services giant. Treasury initially pumped $25 billion into Citi by buying preferred stock through the Capital Purchase Program of the Trouble Asset Relief Program, or TARP. It then exchanged those securities for common shares at a price of $3.25 per common share.
Treasury still owns about 5.1 billion shares of Citigroup common stock and said Thursday that it plans on selling the holdings "in an orderly fashion" once a blackout period set by the bank related to its second-quarter earnings release ends.
There are almost 29 billion Citi shares outstanding, according to FactSet Research. That means the U.S. government still owns about 17.5% of the company.
Citi shares fell 1.2% to $3.71 in midday trading Thursday. The stock is up 12% so far this year.
source:marketwatch
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