By Dakin Campbell and Andrew MacAskill

Citigroup Inc. said the Abu Dhabi Investment Authority is seeking to end an agreement to buy the bank’s stock for more than 8 times its current price, or to receive more than $4 billion in damages if the deal is upheld. Abu Dhabi Investment, one of the world’s top two sovereign wealth funds, filed a claim alleging “fraudulent misrepresentations” tied to its agreement to buy $7.5 billion of common stock, Citigroup said yesterday in a statement. The claims have no merit, Citigroup said. Abu Dhabi would acquire the shares for $31.83 to $37.24 apiece, under the agreement.

CRAIG: One suspects Abu Dhabi’s claim of “fraudulent misrepresentations” are aimed directly at arch criminal Robert Rubin. Since November 2007 Citi has certainly had material adverse changes and their accounting practices (current and past) have been and remain fraudulent. Seems very strange this event is timed so closely to Abu Dhabi’s partial bailout of Dubai where Citi likely has a huge exposure in CDS’s.

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