foolish for the Government to sell its shares of Citigroup. Whoever leak this out ought to be fired. Why don't the government line up certain buyers at a good price then announce it. Poor planning on C and government if you asked me.
since the govt holdings are all in paper certificates, there's no way they have selling going on right now, I'm sure they are negotiating to figure out what they will do, but were talking months from now
Well the govt will be happy as long as it gets $2.33 x 1.08. They have saved the bank from collapse as originally intended. Purpose served at no cost to the govt! Citi should buy back all govt shares at (lowered) market price and not let the Wall Street looters get it. I think, the govt will insist on selling back to Citi only and reduce dilution. I, therefore, believe that this share-price lowering will be just temporary, which is driven by bloody speculators. Shorts will regeret if they fall in their trap.
It wasn't the govt, it was Citi which announced (?) that it will propose the share sell off to the govt. Perhaps a deliberate attempt by Citi management to keep the share price low (at the same time telling others that the govt will have "decent" return on their money) so that Citi will have a substantial saving if it buys back all the govt shares. The govt also will have it better as long as they get conversion price ($2.34) plus 8% dividend. If all govt shares are bought back by Citi, the shareholders will be the beneficiary of the pay back to the govt at a lower market price!! Just be patient. The share price must go back up to higher levels if the dilution is minimized due to the pay back.