Wednesday, November 28, 2007

Citigroup's ME connection

In other news, the Abu Dhabi Investment Authority* made a big splash yesterday by infusing $7.5 billion cash into the floundering financial behemoth Citigroup, giving a much needed boost to the stock market. The investment leaves the Gulf emirate with a potential 4.9% in Citi, raising its stake slightly over that of the previous largest holder.

That previous largest holder, of course, would be Prince Alwaleed bin Talal bin Abdul Aziz al Saud, who owns approximately 4.3% of the company. Notice a trend? Business Week says: get used to it.

* FWIW, the ADIA was established in 1977 by Sheikh Zayed bin Sultan Al Nahayan, the former (now deceased) President of the United Arab Emirates. His sons now run it. You may remember the Sheikh as the patron of the (also defunct) Zayed Centre for Coordination and Follow-Up (ZCCF). Here's some stuff I posted a few years ago about the Centre but most of the links are now broken. Ditto. And some unsavory information on previous attempts by the late Sheikh and the ADIA to invest in American banks -- courtesy of the also (sadly) defunct Ideofact. (He's back!!! How did I miss it?)