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We, the people, deserve the same opportunities given to Sheiks! On Cigroup (C) we want the same deal offered to them! November 27, 2007

Posted by deminvest in C Citycorp, stocks that pay high dividends.

No, I don’t have $7.5Billions, but I still want to get $2000 of equity units that pay an 11 percent annual yield until they are converted into Citigroup common shares at a price of up to $37.24 a share between March 15, 2010, and Sept. 15, 2011.

I’d love to get 11% yield for four years! Also I am pretty sure that stockprice for Citicorp will be well above $37.25 in four years: it is less than a yearly 5% growth for four years. Most stocks have much more than such a lousy performance.

I am a stockowner of Citigroup since years. Why don’t I get the same opportunity given to Abu Dhabi government?

Not only those dumb Citigroup managers trew away my stock-owner’s money on stupid sub-prime speculations. Now they are giving 11% yield and diluting my stocks 6.5% to those Sheiks, without giving us shareholders the same opportunity.

This is crazy and unfair!

We, the people, deserve the same opportunities given to Sheiks! Yea we don’t have $7.5 B, but together, if we want, we can put up some nice amounts too.


1. retirein - November 27, 2007

Actually, if Citigroup continues to pay yearly dividends, you can buy shares on the market today and get better conditions than the Sheiks:

1) You pay $30.61, saving more than 20% compared what they’ll pay in 4 years ($37.24).
2) You get 6.8% a year in dividends. If you add it to the 5% (which is the discount of current price compared to Sheik price divided by four years), you get 11.8% gain. Poor sheiks only get 11%!

2. deminvest - November 27, 2007

The difference between me and the Sheiks (besides the fact that I have fewer dollars than they do) it that, if I buy C shares, and they go down, I lose my money. The Sheiks on the other hand, if Citigroup shares go down, can decide to get their money back instead of buying at 37.24.

3. retirein - November 27, 2007

Deminvest, you’re wrong there:

Abu Dhabi Investment Authority is getting mandatory convertible securities. This means they will have to convert. Even though Sheiks will be partially protected if Citigroup shares don’t do good:

“The investment group is buying mandatory convertible securities that can be converted into Citi stock in 2010 and 2011 at prices ranging from $31.83 to $37.24 per share.”

So if C shares plunge to $2 a share, Arabs will still have to buy at outrageous $31.83. On the other hand if C price climbs to $126, Sheiks will but at screaming bargain price of $37.24

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