【附录】Citigroup Faced A Tough Sell On TARP Repayment Raise
12/17/09 ,By Lynn Cowan and Adam Edelman
Of DOW JONES NEWSWIRES
Citigroup Inc. (C) was able to raise $20.5 billion in securities Wednesday to pay off government bailout funds, but it was a tough sell.
Citigroup was the last of the major Wall Street firms to pay back Troubled Asset Relief Program monies, and its stock offering proved to be the hardest to market to investors. From the time the company announced its plans on Monday, its stock did nothing but slide. After closing Wednesday at $3.45, the deal priced at $3.15 a share, an 8.7% discount.
In contrast, Wells Fargo & Co.'s (WFC) stock rose after its Monday announcement, and continued higher after it sold a total of $12.25 billion in a stock offering Tuesday at a 1.9% discount, within the normal bounds of most follow-ons. The San Francisco-ba<x>sed bank's offering attracted so much interest that underwriters were able to exercise their option to purchase 63.9 million additional shares on top of the 426 million the bank had originally set out to sell; doing so eliminated the need for Wells Fargo to sell assets.
Bank of America Corp. (BAC) raised $19 billion in a complex stock transaction earlier this month. Its stock priced at a nearly 5% discount, and initially rose in the days following the deal, but has declined since then.
Citigroup's offering, which originally included plans for the U.S. Treasury to also sell part of its 34% stake in the company, ended with Treasury backing out. The U.S. government's original Citigroup investment was at $3.25 a share, so it would have suffered a loss by selling.
The Treasury Department said it would extend its lock-up period on the sale of its 7.7 billion-share common equity stake to 90 days from 45 days after the completion of the offering, a sweetener aimed at investors to help move the company's deal along.
"This is and never was a lay up shot like Wells Fargo's repayment of the TARP," said Scott Sweet, managing director of research firm IPOBoutique.com.
作者:The Fifth Season 在 海归商务 发贴, 来自【海归网】 http://www.haiguinet.com