Saudi Prince Alwaleed bin Talal said today he plans to increase his stake in Citigroup Inc. to 5 percent, and expressed support of the bank’s management.
Prince Alwaleed, who currently holds less than a 4 percent stake, has been buying shares of the bank with 30 Connecticut branches, believing they are undervalued. The longtime Citi investor said in a press release that the New York-based bank has been taking necessary steps to improve its operations amid the ongoing credit crisis.
Prince Alwaleed initially invested in Citigroup’s predecessor, Citicorp, in 1991, coming to its rescue after the bank made some losing bets on U.S. real estate and Latin America. The initial investment was less than $600 million.
The investment has made Prince Alwaleed billions of dollars, but the value of his holdings has fallen sharply over the past year as Citi has been hit hard by the credit crisis. (AP)
