Bank says panel awarded in its favour over ADIA claims tied to $7.5bn investment
Citigroup Inc, the third-biggest US bank, said an
arbitration panel awarded in its favor on all claims made by the Abu Dhabi
Investment Authority tied to its $7.5bn investment in the New York-based
The panel issued its finding on Oct 14, Citigroup said today
in a regulatory filing. The case dated back to 2009, when the Abu Dhabi fund,
known as ADIA, alleged “fraudulent misrepresentations” in connection with the
investment and sought to abort the deal or recover damages in excess of $4bn if
the purchase was upheld, Citigroup said in a statement on its website at the
ADIA agreed to inject $7.5bn into Citigroup in November
2007, as the bank faced record losses tied to subprime mortgages. Shares in the
bank have fallen about 90 percent since the end of November 2007.
Shannon Bell, a spokeswoman for the bank, declined to
ADIA - whose assets range from Citigroup bonds to a stake in London's Gatwick Airport - does not disclose its net worth. The Sovereign Wealth Fund Institute estimates its value at $627bn and ranks it among the largest in the world.
It does not appear the first instance, that the wealth fund has taken for a ride. They appear to fall easy prey to rosy baits. If only the fund is utilized for direct investment such as venture funds; seed capital; etc. after due evaluation.