Citi to launch a $20.5 billion fire sale of stock

Full Story at msnbc.com

NEW YORK – Citigroup Inc. said Wednesday it is selling a huge chunk of its stock at a steep discount to raise the cash it needs to repay bailout funds and free itself from government support.

But the government backed out of selling any of its 34 percent stake in the bank due to the tepid investor response and the weak price garnered by the $20.5 billion equity offering — described by Citigroup as the largest in history.

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