Treasury begins final public offering of Citigroup shares
The Treasury Department began a public offering of 2.4 billion shares of Citigroup (C) common stock purchased during the bailout. The Treasury said late Monday the completion of the offering will depend on whether or not it receives an acceptable price for the shares. In July 2009, the Treasury received 7.7 billion shares in Citigroup when the bank entered into the Capital Purchase Program for $25 billion in cash to help strengthen its balance sheet. The Treasury has unloaded 5.3 billion shares to date at market rate. The offering announced Monday, if completed, would dispose of the Treasury's remaining shares in Citi, however, it would continue to hold warrants for Citigroup common stock. The Treasury is also entitled to receive up to $800 million in trust-preferred securities currently held by the Federal Deposit Insurance Corp. The FDIC will turn over those securities to the Treasury unless it experiences a loss on the debt sale. Morgan Stanley (MS) will act as the bookrunning manager for the offering. Write to Jon Prior.