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Citigroup Inc. reported in a recent Securities & Exchange Commission (SEC) filing that it owned 7.8 million shares of Fleetwood Enterprises Inc. stock, the equivalent of 19.8% of the Riverside, Calif.-based RV and manufactured-home builder.
However, Citigroup did not intend to accumulate such a large stake in Fleetwood and plans to sell part of its Fleetwood holdings, said Kathy Munson, Fleetwood’s director of investor relations.
Citigroup, through several of its investment funds, owns Fleetwood common stock and Fleetwood trust-preferred securities, which are convertible into Fleetwood common stock.
According to Munson, one of Citigroup’s funds bought more of Fleetwood’s trust-preferred securities than what the parent company intended, so it will sell off a portion of the trust-preferred.
The Citigroup funds bought the Fleetwood common stock and trust-preferred securities for investment purposes, not to attempt a take over, Munson added.
The trust-preferred securities are convertible into Fleetwood common stock at prices ranging from slightly more than $10 a share to more than $12 a share, Munson said. Fleetwood stock closed today (June 4) at $8.01 a share in New York Stock Exchange trading.