Jan. 12 (Bloomberg) -- Citigroup Inc., the U.S. bank facing an estimated $4.21 billion fourth-quarter loss, may get cash infusions from Saudi Prince Alwaleed bin Talal and China's government to bolster its capital.

Citigroup, the largest U.S. lender, is seeking a total of $8 billion to $10 billion from investors including Alwaleed, who already owns almost 4 percent of its shares, and China Development Bank, the Wall Street Journal reported yesterday, citing people familiar with the matter. The Chinese bank is likely to invest about $2 billion, the newspaper said.

Separately, the Financial Times today reported that Citigroup may raise as much as $14 billion, including $9 billion from China and $1 billion from the Kuwaiti Investment Authority. A public placement of shares would add another $2 billion to $4 billion, the newspaper said.

Subprime mortgage losses have drained the capital Citigroup keeps as a cushion against bad loans, forcing it to try to sell equity for the second time in two months. The New York-based bank raised $7.5 billion from the ruling family of Middle Eastern emirate Abu Dhabi in December, joining Merrill Lynch & Co., Morgan Stanley and UBS AG in seeking infusions from overseas investors.

``I don't remember a time in history when so many banks were running around the world with hats in hand,'' said Richard Sylla, a financial history professor at New York University's Stern School of Business.

Citigroup spokesman Michael Hanretta declined to comment. Heba Fatani, a spokeswoman for Alwaleed's holding company, didn't respond to an e-mail seeking comment.

Mortgage Writedowns

The lender may report a fourth-quarter loss of $4.21 billion on Jan. 15, according to a survey of 17 analysts by Bloomberg. The bank may take almost $19 billion of writedowns on its mortgage-related investments, Goldman Sachs Group Inc. analyst William Tanona estimates.

Alwaleed has been Citigroup's biggest individual shareholder since the early 1990s, when soured investments in commercial real estate left corporate predecessor Citicorp short of capital.

Then-Chief Executive Officer John Reed sold $590 million of convertible preferred stock to Alwaleed in February 1991, and the Saudi billionaire stuck with the investment following Citicorp's merger in 1998 with Travelers Group Inc.

Stock Plunge

Citigroup's stock turned in the worst performance last year of the 30-member Dow Jones Industrial Average. The value of Alwaleed's stake, which was 198 million shares as of June, has plunged by about half since the beginning of 2007 to about $5.7 billion. Yesterday the bank's shares rose 45 cents in New York trading, or 1.6 percent, to $28.56.

In an interview late last year with Fortune magazine, Alwaleed said the mortgage writedowns caused him to lose confidence in former Chief Executive Officer Charles O. ``Chuck'' Prince. The bank ousted the CEO in early November and in November promoted trading and investment banking chief Vikram Pandit into the top job.

Alwaleed's total stake will probably be limited to less than 5 percent to avoid scrutiny from regulators, the Wall Street Journal said, citing an unidentified person. The investment from China may be through convertible debt, the paper reported.

Citigroup is in discussions with other shareholders, including U.S. investment funds, about raising their stakes, the Journal said. Citigroup is hoping to disclose the investments when it reports fourth-quarter earnings on Jan. 15, the paper said.

The Financial Times reported that the Chinese investor may be a lender such as the Industrial and Commercial Bank of China or the China Development Bank, or it may be an investment arm of the government.

To contact the reporter on this story: Christine Harper in New York at charper@bloomberg.net.

Last Updated: January 12, 2008 12:20 EST