Well I received my packet from Citi today identifying the proposed exchange of the preferred stock at 7.3 /1 exchange ratio. Also in the packet was a letter that identified their intent to do a reverse split. If exchanged right now the 7.3 would amount to well less than the $25 / share of C-G ($21). My guess is that as soon as the market finds out that there is going to be a reverse split the price will go down even further so I would not expect the price of C-G to increase towards $24-25 / share as once thought. Conversely, I’m thinking it will be down to $15 or less by the end of the month when the exchange is due and the price of the common will be below $2.50. Guess they will be paying the 7.875% to a lot of folks for a while. Anyone believe differently?

ChuckJ