Citigroup plans to sell 8%-10% ELKS linked to General Electric stock

By Susanna Moon

Chicago, Dec. 4 - Citigroup Funding Inc. plans to price 8% to 10% Equity LinKed Securities due Jan. 26, 2011 based on the common stock of General Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable semiannually.

The payout at maturity will be par of $10.00 unless General Electric stock falls below the trigger price - 75% of the initial price - during the life of the notes, in which case investors will receive a number of General Electric shares equal to $10.00 divided by the initial price or, at the holder's option, the value of those shares in cash.

The ELKS will price in December and settle three days later.

Citigroup Global Markets, Inc. is the underwriter.

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