Citigroup Inc. on Thursday carried out a part of the debt exchange offers that, when they are completed, will eventually give the federal government a 34 percent stake in the troubled bank, according to dpa. Citigroup said it completed a $12.5 billion exchange that swapped preferred securities held by private debt holders for interim securities and warrants that will eventually be converted into common stock. The government carried out a separate exchange, swapping $12.5 billion of its preferred shares in the bank for securities and warrants as well. A second exchange, expected to be completed Friday, is for public holders of preferred shares. The government will again exchange up to $12.5 billion in preferred shares for securities similar to the ones it received Thursday.
