Newspaper wrap-up: Citigroup to sell $2 billion stake
Posted Jan 14th 2008 10:48AM by Eric Buscemi
Filed under: China, Citigroup Inc. (C), Merrill Lynch (MER), BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RIO)
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MAJOR PAPERS:
- The Wall Street Journal (subscription required) reported that Citigroup (NYSE: C) plans to sell a stake of around $2 billion to China Development Bank, in an effort to raise capital may be in jeopardy due to opposition from the Chinese government.
- Merrill Lynch (NYSE: MER), which is seeking close to $4 billion in capital, may receive an investment from the Kuwait Investment Authority, according to people familiar with the matter. A deal could be announced as soon as mid-week, according to the Financial Times (subscription required).
OTHER PAPERS:
- There is speculation that BHP Billiton (NYSE: BHP) may raise its offer for Rio Tinto (NYSE: RTP) to 3.6 shares for one from three for one and add a cash sweetener "sooner rather than later," the Australian reported.
- According to CNBC, Citigroup could write down as much as $24 billion from subprime and credit-related losses and there could be twenty-thousand layoffs as part of a plan to cut costs and raise capital.
Tags: BHP, C, China Development Bank, ChinaDevelopmentBank, MER, RTP
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