27 Feb 2009, the news was out. GIC was going to exchange its convertible bond to common stock at a price of $3.25 per share. Based on the opening share price of $1.67 on Friday, this will mean that GIC will have realised a lost of almost half its investment.
The first comment that came out of the article (which I could no longer retrieve because the online Straitstimes actually do now show any news article past 7 days)… exclaim that the loses have not even taken account of the further decline of share price caused by share dilution.
Well, I totally disagreed with that comment. I felt that the result would have been contrary. I thought that this was really a good piece of news for Citigroup. The fact that I am blogging about this is… I have been proven wrong by the markets.
Hmmm… makes me reminiscent about the song… "I started a joke… but I didn’t see … that the joke was on me…"
