Abu Dhabi vs Citi

Thursday, 17 December 2009


The Abu Dhabi Investment Authority, or ADIA is tied up in loss-making agreement to buy $7.5 billion of Citi’s stock at $3183 a share next March even though the stock is trading at around $3.50 a share.ADIA has accused Citi of fraud at the time of the deal, but bankers say the fund will struggle to force the bank into changing the terms of the original agreement .Citi still hopes for a diplomatic solution.
Taking a big hit on Citi comes at a bad time for Abu Dhabi which has to bail out its struggling cousin Dubai.The emirate has already pumped $25 billion into Dubai this year through direct and indirect f