Maybe bailing out Dubai was all Abu Dhabi could afford to do right now. Citigroup (C) is blasting the oil-rich emirate for backing out of a promise to invest $7.5 billion in the bank between 2010-2011. This statement was released yesterday evening
BUSINESS WIRE)–On December 15, 2009, an arbitration claim was filed against Citi in New York by the Abu Dhabi Investment Authority (ADIA), which purchased equity units from the company in November 2007. The units obligate ADIA to purchase a total of $7.5 billion of common equity on specified dates in 2010 and 2011. The arbitration claim alleges fraudulent misrepresentations in connection with the sale and seeks rescission of the investment agreement or damages in excess of $4 billion. Citi believes the allegations are entirely without merit and intends to defend against them vigorously.