Citigroup is expected to get investments from Saudi Prince Alwaleed bin Talal, the government-run China Development Bank and other investors that could total between $8 billion and $10 billion, according to a report.
China Development Investment bank's contribution will be roughly $2 billion while Prince Alawaleed's total contribution isn't clear, the Wall Street Journal reported Friday evening, citing people familiar with the matter. Alawaleed is Citigroup's largest individual shareholder.
His investment in the bank may not grow beyond a 5 percent stake in order to avoid regulatory scrutiny, the report said. Details of the planned investments have not been finalized and there is a chance the deals could fall apart, the Journal said.
One foreign government affiliated fund may also contribute, the people said. China Development Bank's may receive convertible bonds for its investment, a person said.
Existing shareholders and some U.S. investment funds are also possible candidates to increase their stake in the bank.
An announcement for the investments could come as soon as Tuesday, when the bank reports fourth quarter earnings. The company may also say it is cutting its dividend payment then, the report stated.