Arbitration Panel Sides with Citigroup over ADIA Dispute
The Abu Dhabi Investment Authority (ADIA) invested in Citigroup during the subprime crisis. In November 2007, ADIA agreed to invest US$ 7.5 billion into Citigroup. Recently, ADIA ended up converting their final tranche of equity units into 5.9 million shares of common stock. With all this being said, this is another occurrence for sovereign wealth funds to be keenly aware of bank bailouts during times of crisis.
Based on Citigroup’s filing, “On October 14, 2011, an arbitration panel issued a final award and statement of reasons finding in favor of Citigroup on all claims asserted by the Abu Dhabi Investment Authority (ADIA) in connection with its $7.5 billion investment in Citigroup.”