Government Sells 1.1 Billion Citigroup Shares

The U.S. Department of the Treasury today announced the sale of approximately 1.1 billion shares of Citigroup (C) common stock as it's trying to recoup some of the cost of $700 billion financial bailout.

To date, the Treasury says has sold a total of approximately 2.6 billion shares of Citigroup common stock at an average price per share of $4.03, and has received total gross proceeds of approximately $10.5 billion from the sale.

Citigroup got $25 billion from the government at the height of the financial crisis to help it remain afloat. In exchange, the Treasury received preferred stock, which it later converted to 7.7 billion shares of Citigroup at a price of $3.25 per common share.

Treasury says it currently owns approximately 5.1 billion shares of Citigroup common stock, which is about an 18% stake. It expects to continue selling its shares in the market after Citigroup releases its second quarter earnings.

Citi shares climbed 1.6% in premarket trading.