The U.S. Treasury Department announced Monday that it began taking the steps necessary to sell its stake in Citigroup (NYSE: C). However, a regulatory filing showed that shares of the bank could start being sold as soon as today.
The Treasury holds 7.7 billion shares of Citigroup and said they will be sold in an orderly fashion based on a pre-arranged written trading plan with Morgan Stanley (NYSE: MS), who has been selected as the sales agent for the agency.
Morgan Stanley has been initially authorized to sell up to 1.5 billion shares, according to a registration statement. Based on the statement, the broker can begin selling those shares today.
Last year, the Treasury exchanged the $25 billion in preferred stock it received in connection with Citigroup’s participation in the bailout programs for common shares at a price of $3.25 per common share.
Shares of Citigroup have sold off 3 percent in Monday morning trade to $4.70. Based on the current share price, the Treasury’s stake is worth roughly $36 billion, which would net the agency a return of about 30 percent.
