UPDATE 1-U.S. to sell 1.5 billion more Citigroup shares

(Adds Citi comment, closing share price)

WASHINGTON, May 26 (BestGrowthStock) – The U.S. Treasury Department
said on Wednesday it planned to sell another 1.5 billion
Citigroup Inc (C.N: ) shares as it whittles down the 27 percent
stake it acquired during the depths of the financial crisis.

Treasury said it had completed an earlier 1.5 billion share
sale and received gross proceeds of $6.2 billion, leaving it
with 6.2 billion Citigroup shares remaining.

That works out to an average share price of $4.13, which
implies the government made a profit of $1.325 billion,
excluding any commissions or charges. Treasury acquired a total
of 7.7 billion Citigroup shares last year at $3.25 apiece.

The government gave the bank $45 billion in bailout money
in 2008 and 2009. Citi has paid back $20 billion in preferred
shares, but another $25 billion was converted to common stock
last year.

Citigroup traded for less than $1 a share during the
darkest days of the financial crisis when investors were
worried about its survival. On Wednesday, the stock closed up 2
percent at $3.86 on the New York Stock Exchange.

A Citi spokesman said the company was pleased Treasury was
making significant progress in profitably selling its shares.

Treasury once again named Morgan Stanley its sales agent.
Morgan Stanley will have discretionary authority to sell the
additional 1.5 billion shares under certain undisclosed
parameters.

Because of a blackout period ahead of Citigroup’s
second-quarter earnings release, Treasury said it would end the
program on June 30, even if it has not yet sold all 1.5 billion
Citigroup shares.

Stock Market Investing

(Reporting by Emily Kaiser, Additional reporting by Dan
Wilchins in New York, Editing by Kenneth Barry)

UPDATE 1-U.S. to sell 1.5 billion more Citigroup shares