(Bloomberg) -- The Somalipirates, renegade Somalis known for hijacking ships for ransom in the Gulf ofAden, are negotiating a purchase of Citigroup.
The pirates would buy Citigroup with newdebt and their existing cash stockpiles, earned most recently from hijackingnumerous ships, including most recently a $200 million Saudi Arabian oiltanker. The Somali pirates are offering up to $0.10 per share for Citigroup,pirate spokesman Sugule Ali said earlier today. The negotiations have entered thefinal stage, Ali said. ``You may not like our price, but we are not in thebusiness of paying for things. Be happy we are in the mood to offer theshareholders anything," said Ali.
The pirates will finance part of thepurchase by selling new Pirate Ransom Backed Securities. The PRBS's are backedby the cash flows from future ransom payments from hijackings in the Gulf ofAden. Moody's and S&P have already issued their top investment graderatings for the PRBS's.
Head pirate, Ubu Kalid Shandu, said"we need a bank so that we have a place to keep all of our ransom money.Thankfully, the dislocations in the capital markets has allowed us to purchaseCitigroup at an attractive valuation and to take advantage of TARP capital togrow the business even faster."
