In Hindsight, do you think that the offer price at 3.15 was deliberate to orchestrate a buy back?
In my opinion...no supporting proof. YES, the $3.15 was INTENTIONAL....C was trading around $3.90 - $4.00 a couple of days before that. Do you remember back in Sept when Pandit said "we have the cash to pay back TARP"...?
This was Pandit's way of holding the Feds in check...while giving him the chance to do what he originally intended to do.
With all the media hype going on the days before about C preparing to repay TARP and the Feds were going to unload $5 billion worth of stock at the same time........what would have happened if C suddenly withdrew the offer because they couldn't round up enough investors to buy the offering. C would have crashed....possibly below $2.50 or more due to no confidence from the investment community.
The Feds would have looked like total fools who didn't know what they were doing....would have brought on doubts about the other companies they allowed to repay TARP too. Could have affected the entire financial industry adversely.
So Pandit really had the Feds wound up so tight around his finger they couldn't say no to anything he could have demanded. At that time they could have made a deal. Feds allow C to repay TARP as they originally had agreed to...and to give C time to stabilize the stock price and do buyback at the same time. They could have enen agreed on they buyback price for the 7.7 billion shares at the end of the 90 day lock-up period. Remember...the original lock-up period was 45 days....suddenly they changed it to 90 days with any real explanation.
The Feds who are involved are "bankers" too. C is still too big to fail .... the Feds will help C out of this predicament.