So realistically if C does a buyback, how much will be bought back? How much cash does C have on hand to do the buy back with? And in consideration the 150 billion shares out there, if the company bought back 10%, that would be 15 billion shares, costing about $75 billion.
Does the company really have that much EXTRA money on hand at the moment? Because if it purchases less than 10% back I don't think it will have too much of an effect on the share price. There are just too many shares out there.
Am I missing something? Thoughts?
Also, the rule does not prohibit the company from buying or ISSUING more than 10% so long as a special resolution is passed by the BOD (not needing stockholder vote). This happened when Citi converted the US Government's preferred shares into Citi common.
Read the wording of your link:
" ... Other typesA company may also buy back shares held by or for employees or salaried directors of the company or a related company. This type of buy-back, referred to as an employee share scheme buy-back, requires an ordinary resolution. A listed company may also buy back its shares in on-market trading on the stock exchange, following the passing of an ordinary resolution if over the 10/12 limit. The stock exchange’s rules apply to on-market buy-backs. A listed company may also buy unmarketable parcels of shares from shareholders (called a minimum holding buy-back). This does not require a resolution but the purchased shares must still be cancelled ..."
....and MS has almost 3 billion shares in their Treasury....if they have not sold them in the open market....that was the number of shares they got from the US Government last December.
By the way...MS is owned 49% by C....did you guys got that?
Do you feel that MS will sell those same shares to C for its Treasury Dept.......and get paid for them with an interest bearing notes or Bonds?
Your over 700 billion cash is offset by over 700 billion in debt. Book value $5.60/share... trading less than book suggests the value of Citi is about earnings, and confidence that a PEG of 0.5 is not pie in the sky.