The US government is all set to acquire a 34% stake in the troubled Citigroup. The move allows the US government to excercise more control over the battered financial major, after it has sucessfully concluded a $58 billion share offering – reported Financial Times.

The bank has announced that almost all of the non-government holders of preferred shares had given their consent to change them into common stock. This paves way for the government to convert its $25 billion preferred shares over the next few days.

Eversince the bank has become a victim of the financial crisis, the government has pumped approximately $45 billion into it. The government has still warrants that bestow it the right to purchase as much as $20 billion of shares in Citi. The US government has said that, despite becoming Citi’s single largest shareholder, it would not take up any board seats.

In a statement, Vikram Pandit, CEO of Citi, said: The completion of the exchange is a milestone that will give the bank new financial strength. After the offering, Citi will have $100 billion in tangible common equity – a measure of the strength of its balance sheet, reported the news paper.

The move is a milestone in a financial crisis that has forced the US authorities to come to the rescue of some of the largest institutions in the country. Citi has been a repeated recipient of government aid and is the only large surviving bank to have had to cede a shareholding to the government.