Abu Dhabi 'seeks end' to Citi stake buy

SAN FRANCISCO: Citigroup Inc said the Abu Dhabi Investment Authority is seeking to end an agreement to buy the bank's stock for more than eight times its current price, or to receive more than $4 billion in damages if the deal is upheld.

ADIA, as one of the world's top two sovereign wealth funds is known, filed a claim alleging "fraudulent misrepresentations" tied to its agreement to buy $7.5 billion of common stock, Citigroup said in a statement. The claims have no merit, Citigroup said. ADIA would buy the shares for $31.83 to $37.24 apiece under the agreement.

The New York-based bank announced this week that it would sell common shares to help repay $20 billion in bailout funds to the US government. "It is going to be tough" for ADIA to evade losses tied to the agreement, said Eric Barden, chief investment officer of Barden Capital Management in Austin, Texas.