Dubai fund says Citigroup could be in need of more cash (Bloomberg) (04-03-2008)

March 4 (Bloomberg) -- According to the head of Dubai International Capital, Citigroup Inc. could be in need of more capital from outside investors as its losses from the subprime market fallout keep growing.

So far, Citigroup has received $7.5 billion from Abu Dhabi, after losing almost half of its market value and its Chief Executive Officer Charles Prince. In January, the company said it was getting another $14.5 billion from investors, including the governments of Singapore and Kuwait.

Sameer al-Ansari, who helps run Dubai International, said at a private-equity conference in Dubai today that in his view, it will take a lot more than that to rescue Citi and other financial institutions. Dubai International is among the investment funds controlled by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum.

Citigroup probably will report a first-quarter loss of $1.66 a share after $15 billion of mortgage-related writedowns, Merrill Lynch & Co. analyst Guy Moszkowski said in a report issued today. The company also may have $3 billion of markdowns from loans used to finance leveraged buyouts and commercial real estate, Moszkowski estimates. Citigroup slumped 54 percent in New York Stock Exchange Composite trading during the past 12 months.

Source: Bloomberg