Citigroup Inc. suffered a significant setback when it failed to complete the largest block trade in Australia in seven years, resulting in a loss of $17 million.
The bank had outbid its competitors to acquire a stake in property firm Goodman Group from China Investment Corp., offering a discount of 1.4% to 1.5% below the previous closing price. However, the deal fell through, leaving Citigroup with unsold stock on its books.
Other banks that were invited to pitch for the transaction had proposed discounts ranging from 3.5% to 4%, suggesting that Citigroup's pricing strategy may have been too aggressive in a competitive market.