Citicorp to Sell More Preferred Stock: Citicorp...

Citicorp to Sell More Preferred Stock: Citicorp expects to sell more than $500 million in preferred stock, completing the first stage of a plan to shore up its capital base, Chairman John S. Reed said. Reed told a news conference in Buenos Aires that the offering could be increased by 15%, meaning that $500 million to $575 million would be raised. He did not disclose who was buying the securities, which can be converted to common stock, other than saying they are “sophisticated investors.” Reed said the sale would complete the first part of a plan to increase its capital base by $4 billion to $5 billion during the next two years to protect against mounting real estate loan losses. Along with the sale of $590 million in preferred stock to a Saudi prince last month, Reed said the latest deal would mean a total of slightly more than $1.1 billion in stock sales.