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No. of Recommendations: 1
saw this @ C's board....If not to averse, might be a decent move for the LT......haven't checked the pricing on the offering and I'd not buy in the seconary marks but if you have access through your broker might be worth a look.

KBM (not - talking his book)
PS: Do your DD on this one

Stocks C / Citigroup
Subject: Re: Public offering Date: 1/16/08 11:51 PM
Author: TMoney2 Number: 3247 of 3247


Citi Makes an Enticing Offer
Preferred Stock Will Pay 7% Return
January 15, 2008 10:29 p.m.; Page C2
Away from the headlines, Citigroup CEO Vikram Pandit quietly offered the great American public a deal this morning.

Lend the bank some money, he said, and we'll pay you a fat 7% interest rate. The payouts will get the same favorable tax treatment as shareholders' dividends, but will be secure against pretty much anything except a full business meltdown. (In an earlier version of this column, I discussed this in terms of Chapter 11. But while we haven't seen the details of the new convertible preferreds, a full Chapter 11 filing might not be needed for Citigroup to suspend dividends.) Oh, and if Citigroup's fortunes recover you'll get to share in the upside along with ordinary shareholders.

That's quite an offer.

The bank is set to issue $2 billion worth of so-called convertible preferred stock to the public.
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