Citigroup buys ex-chief's shares

SANDY Weill, who stepped down as Citgroup's chief executive this week, has sold $264m (£158m) of stock back to the company to fund his 'new stage' of life.

But Weill, who remains chairman, will keep 16.8m shares worth $794m, until he leaves the board, which he does not plan to do before 2006.

Citigroup has a policy of not buying stock from its employees, but said it had made an a exception in Weill's case as such an unusually large block of shares could have depressed the price when sold. The bank said the 5.6m shares were purchased at $47.14 each. Weill, 70, resigned as chief executive three months early to hand over the reins to his long-time ally and confidant Charles Prince, head of Citigroup's corporate and investment bank.

Weill had promised to keep at least 75% of his shares under Citigroup's stock ownership plan. The share price more than doubled in Weill's five years as chairman and chief executive of the world's largest financial services company.

Weill has been with Citigroup or its predecessor companies for 17 years, starting as chairman of Commercial Credit in 1986.