By Stanley Carvalho
UAE capital assesses $7.5bn investment as bank's problems deepen - ADIA sources.
Abu Dhabi is assessing its $7.5bn investment in Citigroup as the bank's problems deepen and consequences of a possible nationalisation become clearer, according to sources close to the Abu Dhabi Investment Authority (ADIA).
ADIA invested $7.5bn last year in Citi through convertible bonds that pay 11 percent in interest, but it must start converting the bonds into 235.6 million shares in Citigroup from March next year.
"Nothing has changed from ADIA's perspective at this point. ADIA's convertible bonds are due for conversion in a phased manner between March 2010 and September 2011, and that stands," an Abu Dhabi government official told Reuters.
"But it is carefully assessing its options due to the latest events - although no decision is taken yet," he said declining to be named due to confidentiality issues. (Reuters)
A little late now to start worrying about it. It was not difficult to see that the banking crisis was in its infancy when the initial investment was made.
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