The Treasury Department said Wednesday that it received gross proceeds of about $6.2 billion from selling 1.5 billion Citigroup Inc. common shares, with plans to unload an additional 1.5 billion shares in the company.
The Treasury, which took a 27% stake in Citi through the Troubled Asset Relief Program, said it would continue to sell shares in Citi "in an orderly fashion."
The second phase of the program, which like the first is being conducted by Morgan Stanley, will be completed by June 30 even if not all 1.5 billion shares are sold. The blackout period ahead of Citi's second-quarter earnings release begins July 1.
Based on the gross proceeds estimate, the Treasury received about $4.13 per share during the initial phase of the program, well above the $3.25 share price it paid to acquire the 7.7 billion Citi shares through Tarp. Citi shares rose 0.1% Wednesday, to $3.89. The Treasury plans to announce details of the final results of the initial sale within two business days.
