U.S. Treasury Sells 1.1 Billion Shares of Citigroup (NYSE:C) Common Stock

In a press release, the U.S. Department of the Treasury announced the sale of approximately 1.1 billion shares of Citigroup (C) common stock pursuant to the completion of its second trading plan with Morgan Stanley (MS) as sales agent.

To date, Treasury has sold a total of approximately 2.6 billion shares of Citigroup common stock at an average price per share of $4.03, and has received total gross proceeds of approximately $10.5 billion from the sale.

Treasury received 7.7 billion shares of Citigroup common stock last summer as part of the exchange offers conducted by Citigroup to strengthen its capital base. Treasury exchanged the $25 billion in preferred stock it received in connection with Citigroup’s participation in the Capital Purchase Program for common shares at a price of $3.25 per common share.

Treasury currently owns approximately 5.1 billion shares of Citigroup common stock and expects to continue selling its shares in the market in an orderly fashion once the blackout period set by Citigroup related to its second quarter earnings release ends. The company is scheduled to release their second quarter earnings on July 16.

Citigroup Inc. reported first quarter 2010 net income of $4.4 billion or $0.15 per diluted share, and revenues of $25.4 billion. This was their highest net income since the second quarter of 2007.

Revenues grew $7.5 billion and net income increased $5.8 billion, excluding the $10.1 billion pre-tax loss from the TARP repayment and exit of the loss-sharing agreement with the U.S. government in the fourth quarter of 2009.

“Citi today is fundamentally a very different company from what it was only two years ago,” said Vikram Pandit, Citi’s Chief Executive Officer. “With its financial strength, strategic clarity, efficiency, world-class business talent, and unique global footprint, Citi is well positioned to benefit from the key drivers of economic growth in developed and emerging markets.

The results of the second trading plan will be posted on Treasury’s TARP transactions report within two business days at www.financialstability.gov.

The offering will be made only by means of a prospectus. Morgan Stanley & Co. Incorporated is acting as a sales agent to Treasury. Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from Morgan Stanley & Co. Incorporated, Attn: Prospectus Department, 180 Varick Street, New York, NY 10014, by emailing [email protected] or by calling toll-free in the United States 1-866-718-1649.