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Old 11-29-2007, 01:54 AM
pig4bill pig4bill is offline
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Join Date: Dec 2005
Posts: 2,658
Default Re: who\'s buying Citigroup

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Too good to be true? The company takes out what amounts to a subprime mortgage, and pays 11% interest. That sure sounds like desparation. Too good to be true, lol.

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It's actually a great deal for Citi, all things considered. Thinking of this as paying 11% in interest is entirely misleading, given that the mandatory conversion provision.

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Yeah, so that after the conversion, it's highly dilutive. Nice.
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