WASHINGTON (dpa-AFX) - Activist investor ValueAct Capital Partners LP has built a roughly $1.2 billion stake in Citigroup Inc. (C) a bet that the giant bank's strength as a service provider to corporations will enable it to thrive in the post-crisis era and make up ground its shares have lost in recent years.
ValueAct, which has built the position over the past four to five months, continues to boost it 'opportunistically,' The Wall Street Journal reported quoting a letter to investors. The stake amounts to about 0.7% of Citigroup, which has a market value of $175 billion.
The San Francisco investment fund has been talking to management and supports Citigroup Chief Executive Michael Corbat, partially because he rose through what it views as the bank's crown jewel, the part of the bank that works closely with large corporate clients, the report said.
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