Aerospace and Defense
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Kuwait's KIA to invest $5 billion in Citi, Merrill
KUWAIT (Reuters) - State-owned Kuwait Investment Authority said it would invest $3 billion in Citigroup Inc and $2 billion in Merrill Lynch & Co, both hit by writedowns linked to the U.S. subprime mortgage crisis.
"As a long-term investor, the KIA believes that the markets currently provide attractive investment opportunities in the financial sector," it said in a statement on Tuesday.
Citigroup, which suffered its first quarterly loss since its creation in 1998, said on Tuesday it was looking to raise $12.5 billion in convertible preferred securities.
Merrill Lynch said it was looking to raise $6.6 billion.
