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Alwaleed to Boost Citi Stake to 5%, Backs Pandit
CITIGROUP, BANKS, FINANCIAL SERVICES, MANAGEMENT, FUNDING, CREDIT, INVESTMENT, ALWALEED
CNBC.com
| 20 Nov 2008 | 07:53 AM ET

Citigroup shares rose in premarket trading Thursday after Saudi Arabian financier and investor Prince Alwaleed bin Talal bin Abdulaziz Al Saud said he will increase his current stake in Citigroup to 5 percent from 4 percent.

The move comes after series of capital boosts that have increased Citigroup's tier-one capital ration to more than 10 percent, Prince Alwaleed said in a statement.

In addition Prince Alwaleed expressed "his full and complete support to Citi management, led by Vikram Pandit, and believes they are taking all necessary steps to position the company to withstand the challenges facing the banking industry and the global economy."

Alwaleed holds more Citigroup shares than any other person.

His percentage stake was reduced in late 2007 and early 2008 as Citigroup raised some $50 billion of capital from sovereign wealth funds and other investors, plus Alwaleed himself, to shore up its balance sheet. It recently raised another $25 billion through the U.S. government's bank bailout package.

Citigroup has raised $50 billion in private capital on top of $25 billion in government assistance, the statement said.
© 2008 CNBC.com

URL: http://www.cnbc.com/id/27819043/