Finance Standard, 24 Feb 2009
"Aite Group senior analyst Denise Valentine said that the Government of Singapore Investment Corp. (GIC) could face a dilemma if banks such as Citi, believed to be in discussion with US officials on such a deal, become part-owned by the government through the direct share ownership.
"SWFs investing in Citi have watched their investment go from very bad to much worse. US government ownership of the bank will influence Citi's strategy in the future and a conversion of preferred shares to common shares will dilute the SWF's share," she said.
She added, "SWFs may have already mentally written off their investment. SWF investors will likely hold their 7 per cent preferred bond as the prospect of stock ownership for a $2 per share company selling off assets is not good.""
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