Citigroup Inc. may incur losses of up to A$41 million ($26 million) due to difficulties in fully selling a block of shares in Australia's Goodman Group.
The bank had underwritten the shares for China's sovereign wealth fund, China Investment Corp.
The sale of 50.4 million Goodman shares was initiated by Citigroup on Tuesday evening, with a floor price set at A$37.55, representing a 1.5% discount from the previous closing price of A$38.12.
The challenges faced by financial institutions in managing large block trades in volatile markets are highlighted by this situation.