Tuesday, June 30, 2009

OMG, This Can't Be Happening to the Citi That Never Sleeps

As a proud Citi common shareholder, I've just received proxy materials from Citi today. There's no denying it - it was a major mistake adding the shares I added to my position in C.

Amongst other interesting developments, the following points are the most painstakingly confounding:

• to increase the number of authorized shares of common stock from 15 billion to 60 billion shares (the Authorized Share Increase); This move is screaming value dilution.
• to (i) effect a reverse stock split of our common stock at any time prior to June 30, 2010 at one of seven reverse split ratios, 1-for-2, 1-for-5, 1-for-10, 1-for-15, 1-for-20, 1-for-25 or 1-for-30, as determined by the board of directors in its sole discretion and (ii) if and when the reverse stock split is effected, reduce the number of authorized shares of our common stock by the reverse split ratio determined by the board of directors (the Reverse Stock Split); I've been the victim of reverse splits before - never again.

• and to eliminate the voting rights of shares of common stock with respect to any amendment to the restated certificate of incorporation (including any certificate of designation related to any series of preferred stock) that relates solely to the terms of one or more outstanding series of preferred stock, if such series of preferred stock is entitled to vote, either separately or together as a class with the holders of one or more other such series, on such amendment (the Preferred Stock Change, and together with the Authorized Share Increase and the Reverse Stock Split, the Common Stock Amendments). What?? How can this be legal??


How can any of this be legal? What do they take us for?

My Dad was right for once - good things are not cheap and cheap things are not good!

I really have to think long and hard about what to do with C.

Oh, this is exasperating!

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