Carlos Slim-Controlled Fund Buys Citi Shares

Mary Altaffer / AP

Inbursa, the investment firm controlled by Mexican billionaire Carlos Slim, started buying Citigroup shares last week, sources tell CNBC. Inbursa has bought roughly 26 million shares of Citi. Shares were bought for investment funds and on behalf of clients.

Carlos Slim is believed to the second or third richest man in the world. The 26 million shares these days only work out to be about $134 million. Inbursa's purchase of Citi shares would seem to be an endorsement of the company and a sign that they think Citigroup will survive.

It also suggests that the Slim family believes that Citigroup is a good buy at these levels.

Shares of Citigroup have surged close to 60 percent this week after the U.S. government agreed to shoulder most losses on about $306 billion of the bank's risky assets and inject new capital. Citigroup's stock plummeted last week to its lowest level since December 1992, raising doubts about the bank's ability to survive.

Carlos Slim made his fortune through the purchase of distressed assets in Mexico back in 1982. This is something he is very familiar with.

Analysts say Citigroup could decide to sell its Banamex bank in Mexico to raise capital for its U.S. operation. If Banamex, Mexico's No. 2 bank, goes on the block, Slim would be the most obvious buyer, they say.

Slim's spokesman said last week the mogul was not currently interested in Banamex, bought by Citi in 2001 for $12.5 billion, a record acquisition at the time for Mexico.

-- Reuters wires contributed to this article

© 2008 CNBC.com