Treasury Free to Sell Citigroup Shares
The Treasury Department can now freely sell the 7.7 billion shares it owns in Citigroup (NYSE:C) after the "lockup" expired on Wednesday.
Now that the shares in Citigroup has skyrocketed over the last several weeks, holding at over $4 a share for now, it would be a good time for the Treasury to sell and realize gains of up to $6.2 billion, depending on how and when they are unloaded.
This would be good for Citigroup as well, as it would probably get another good increase in its share price when the government is no longer a major owner in the business. Shareholders and investors have been waiting for that to happen in order to have a better idea on where the company will go without government interference.
The original investment in city by the government was $25 billion, and today it would be worth over $31 billion if it was sold.
Even with this scenario, it is expected the selling of shares in Citigroup will be in chunks over the next year or so, which as far as return on investment goes, could be good or bad.
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