Question of the week: Citi

Just a simple question:

The Government is converting preferred Citi (symbol: C) shares into common shares at $3.25. The current Citi stock price is $1.50. Taking into account that the Government now has 36% of Citi's common stocks, can we assume that by buying Citi's stocks at the price below $3.25 we may benefit in long term? - If not then we will lose together with the Government...