With more than US $10b stake in Citicorp Alwaleed is largest shareholder

HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, chairman of the Kingdom Holding Company, added $500 million to his existing shares in Citigroup, making him the largest shareholder.

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By  Massoud Derhally Published  July 18, 2002

HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, chairman of the Kingdom Holding Company, has added $500 million to his existing shares in Citigroup, increasing his stake in the company to over US $10 billion and making him the largest shareholder. The new increase comes after a US $500 million investment in Citigroup in March 2002.

“Citi’s share price was at too attractive a price,” said Alwaleed in a company statement.

Citigroup achieved substantial results in the second quarter of this year that ended June 30, 2002, reporting a net income of a $4.08 billion, up 15% over the prior year. Thus, bringing up its net income to around $9 Billion for the first half of 2002.

Revenues increased 10% exceeding $22 billion, and the core income increased 7% to a record $4.06 billion over the second quarter of 2001. Moreover, Citigroup’s total equity, including trust preferred securities reached $93 billion (SAR 350 billion), and the company’s return on common equity was 20% for the second quarter.

Commenting on the half-year results, Alwaleed said, “These results reflect Citigroup’s power due to its strong international presence. Its diverse banking and investment services that it is provided to its consumers globally makes it more competitive and diversifies its income. This is in addition to the its successful management that weathered global economic crises.”

Citigroup has made more money than any other company in the first quarter making it the most profitable company in the world.

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