Redecard May Not Be Citigroup's Only Brazilian Divestment

Citigroup, the beleaguered US financial services behemoth, is expected to continue divesting its stake in Brazilian credit card company Redecard. Citigroup, which owned a 31% stake in Redecard in 2007, has been gradually selling shares in the company as part of its capital raising efforts to fund its restructuring programme. It has to date reduced its stake to roughly 17%, which has generated some US$1.4bn in capital. According to a February 20 filing to the Brazil's securities regulator, Redecard said that Citigroup had notified it that it plans to sell more of its holding.

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