Foreign Influence in American companies?

[ldg420]

Is there anyone else who finds it a little troubling that huge American companies like CitiGroup have sold enormous shares (4.9% of itself for 7.5 Billion dollars.) to the Abu Dhabi investment authority. Doesn't this just seem inherently wrong??????????:stoned:

ldg420 Reviewed by ldg420 on 01-19-2008. Foreign Influence in American companies? Is there anyone else who finds it a little troubling that huge American companies like CitiGroup have sold enormous shares (4.9% of itself for 7.5 Billion dollars.) to the Abu Dhabi investment authority. Doesn't this just seem inherently wrong??????????:stoned: Rating: 5

[dragonrider]

Publicly traded companies do not determine who can and cannot buy their shares, do they?

[ldg420]

Publicly traded companies do not determine who can and cannot buy their shares, do they?

they have no say who can buy shares, however in this case CitiGroup didn't sell actual shares to any random investor, they sought out the Abu Dhabi Investment Authority(ADIA) and brokered a deal to sell equity units in a private placement with a mandatory conversion into common shares totaling no more than 4.9% of the total outstanding shares........:stoned:

[dragonrider]

I guess I'm not really sure what all that means. I'm not generally all that concerned about foreign investment in US companies.

[ldg420]

^^^it does get confusing but my problem with the whole thing is that this makes Abu Dhabi CitiGroup's largest shareholder, and could feasibly make decisions that could cut American jobs.........:stoned:

[dragonrider]

I wouldn't think that 4.9% would put them in much of a position to exercise undue influence over the company.