Citigroup can't block Abu Dhabi arbitration over $7.5 billion stake

A U.S. judge has rejected Citigroup Inc's (NYS:C) effort to block the Abu Dhabi Investment Authority from seeking a second arbitration over the sovereign wealth fund's $7.5 billion investment in late 2007 to shore up the then-struggling bank. U.S. District Judge Kevin Castel in Manhattan said on Monday that arbitrators, not federal judges, had power to decide whether Citigroup's success in the first arbitration barred the ADIA from pursuing a second arbitration, in which it seeks $2 billion of damages or to rescind its investment. The case arose from one of Citigroup's earlier efforts to shore up its capital base, in the wake of billions of dollars of writedowns tied to subprime mortgages.

via Business News - Yahoo Finance http://finance.yahoo.com/news/citigroup-cant-block-abu-dhabi-232151706.html