NEW YORK — Shares in Citigroup Inc. rose sharply Wednesday, even as other bank stocks fell, after news reports confirmed that Mexican banking tycoon Carlos Slim's investment firm purchased 26 million Citi shares.
Shares in Citi recently traded up 13% to $6.87.
Shares in other large banks, by contrast, largely fell across the board. The government's bailout of Citigroup raised investor concern that other large banks could eventually see another round of government capital infusions, which dilute existing shareholders.
Shares in Bank of America Corp. had recently fallen 5.8% to $13.93.
Investors eyed reports on Tuesday that Slim's investment firm, Grupo Financiero Inbursa, had purchased 26 million Citigroup shares. It was not immediately clear, however, whether that large buy of Citi shares was a proprietary investment for Imbursa, or a purchase on behalf of clients.
It became clearer on Wednesday that Slim's firm had in fact made the purchase for its own investment portfolio, driving Citi shares higher.
