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Thursday, 27 May 2010

Will Citigroup Find a White Knight in Qatar? - Deal Journal - WSJ

The Citigroup bandwagon may have a new passenger.

The Financial Times reports that the Qatar Investment Authority is mulling whether to buy a big slug of the Treasury Department’s 7.7 billion-share stake in the New York financial-services company.

University of Louisiana Finance Professor Linus Wilson would argue that the Treasury should run–not walk–to Qatar to do a deal. Wilson has been watching with trepidation as Citigroup’s shares have fallen to as a low of $3.65 last week from a six month high of $4.97 on April 20, amid the broader swoon in the stock market.