It looks like Monday may be the last day of Uncle Sam’s ownership ties to Citigroup. Dow Jones’ Jamila Trindle reports: The U.S. Treasury said an auction of more than 465.1 million warrants to purchase Citigroup Inc. common stock will begin Tuesday morning.
The warrants will be sold through a Dutch auction method that sets a market price by allowing investors to submit bids above a minimum price specified for each auction. The auction will start at 8 a.m. EST and offer 255,033,142 “A” warrants with a minimum bid price of $0.60 per warrant and 210,084,034 “B” warrants with a minimum bid price of $0.15 per warrant.
Bidders have until 6:30 p.m. Tuesday to submit bids for the warrants. Deutsche Bank Securities is in charge of the sale. Treasury received the warrants in consideration for investments made under the Troubled Asset Relief Program, created to help bail out Wall Street during the financial crisis. Treasury infused financial firms with cash in exchange for ownership stakes in the companies.
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