ADIA files claim over a $7.5 billion investment in Citi

Citigroup Inc said on Tuesday the Abu Dhabi investment Authority filed an arbitration claim against it, alleging misrepresentation over a $7.5 billion investment by the sovereign wealth fund in the bank.

The sovereign wealth fund bought equity units from the US bank in 2007. In the original deal with ADIA, the Citigroup securities must be converted into common stock at a price between $31.83 and $37.24 a share between March 2010 and September 2011.

In the arbitration claim filed on Tuesday, ADIA alleges fraudulent misrepresentations and seeks rescission of the investment agreement or more than $4 billion in damages, Citigroup said.

Citigroup said it believed the allegations were without merit and intends to defend against them.

Source: Reuters