Citigroup has received investor approval for a reverse stock split to cut the number of shares outstanding, The Wall Street Journal reports. Citigroup may convert every 10 common shares into one new common share at the close of trading on May 6, 2011, adds Bloomberg.
The reverse split is expected to increase the bank’s stock price above the $5 per share mark. The bank will also pay an increased dividend of 1 cent per share in the current quarter. The move is to attract more potential investors to the bank’s shares.
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