(C) Citigroup Reverse Split?!?
I was just reading RealMoney's blog on the C annual meeting taking place now. In it they were talking about Treasury using it's voting rights. One of the propsals discussed was a reverse split. Does anyone know about this? I follow this stock very carefully and this is the first I've heard.
"Treasury also voted in favor of two Citigroup proposals that fall within its discretionary voting rights. One is to permit the company to issue common shares to settle $1.7 billion of "common stock equivalent" awards to employees in lieu of cash incentive compensation. Citigroup committed to the Federal Reserve that it would issue such shares as part of the terms under which it was permitted to repay a portion of its TARP assistance last December. The second proposal is to permit a reverse stock split which will address the fact that the company has a much larger number of shares outstanding than is necessary to ensure adequate trading liquidity."
The Department of Treasury web link to article: