Citigroup Says Reverse Stock Split, Payout Lure Investors

Citigroup Inc. investors approved a reverse stock split as Chief Executive Officer Vikram Pandit said the plan, along with a renewed dividend, will attract more investors to the New York-based bank’s shares.

“These actions open doors for more potential investors to buy in,” Pandit said today in remarks prepared for the company’s annual shareholders meeting in Manhattan. “Some institutional investors will not buy stocks that trade at less than $10 or $5 per share or that do not pay a dividend.”