| | |  Business News | March 2009 
Citigroup Mexico Insiders Buy Shares in Bank
 Noel Randewich - Reuters
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New York/Mexico City - The recent purchase of shares in Citigroup by its top executives in Mexico is a show of confidence in the troubled bank's eventual recovery, a spokesman for the group's Mexican unit said this week.
Citigroup Inc's (C.N) Roberto Hernandez, chairman of its Mexican Banamex unit, bought 6 million shares of Citi and Manuel Medina-Mora, in charge of the group's Latin American business, bought 1.5 million shares, according to an SEC filing.
Both executives have denied market speculation in recent weeks that they were planning to buy Citigroup's Mexican bank Banamex.
"They (the share purchases) are a show of confidence in the company's future and its return to profitability," Banamex spokesman Paulo Carreno said in a statement to Reuters.
Mexico's bank regulator said on Friday it is analyzing the legal implications of the U.S. government's plan to boost its equity stake in Citigroup Inc.
Analysts say Citi might have to sell Banamex because of a Mexican law prohibiting foreign governments from owning Mexican banks.
Hernandez resigned from Citigroup's board last month, stirring speculation that he might be preparing a bid. Hernandez also has a stake in a Mexican mutual fund that owns 14.6 million shares of Citigroup, according to the filing.
Hernandez bought his shares at $1.25 each, while Medina Mora paid $1.24, according to the filing.
Citigroup's stock closed at $1.13 on Wednesday, down 7.38 percent over the prior session and down 95 percent from a year ago.
(Editing by Phil Berlowitz) |
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