Custom Search

Citigroup says most Old Lane investors to withdraw

By Andria Cheng, MarketWatch

Last Update: 1:37 PM ET May 3, 2008

NEW YORK (MarketWatch) — Banking giant Citigroup Inc. said most of the
unaffiliated investors in its Old Lane hedge fund will opt to withdraw their
investments.

In April, almost all of the unaffiliated investors had notified Old Lane of their
intention to redeem their investments, Citigroup said in a regulatory filing
Friday.

Old Lane, the $4.5 billion hedge fund that Citigroup (C) bought in July 2007, had
notified its investors that they will have the opportunity to redeem their
investments without restriction, effective July 31.

The company said it recorded a pretax charge of $202 million during the first
quarter to write down intangible assets related to the fund.

The exit will drain about $3 billion from the fund, the Wall Street Journal
reported, citing unidentified people familiar with the fund.

In March, Citigroup gave Old Lane’s outside investors permission to withdraw
early as a result of changes in the fund’s senior management, including Old Lane
co-founder Vikram Pandit’s becoming Citigroup chief executive in December and
fellow co-founder John Havens now heading Citigroup’s investment bank, the report
said.

Separately, Citigroup said Friday it sold $4.9 billion in stock in its recent
offering — about $400 million more than previously reported — as a result of
its own Citigroup Global Markets Inc. exercising an overallotment option to
purchase more shares, according to Dow Jones Newswires.

Possibly Related Posts:

• US debt clock runs out of digits —- BBCNews
• US to buy stake in banks; first since Depression
• A Great 2008-2009 Depression
• the fear is still there - doubt it will be gone by monday.
• Quote by Thomas Jefferson “If a Central Bank is ever created in America- Through Inflation and Deflation the “Bankers” will Rob The Americans”

Comments