Bank of America (BAC) to Sell Most of CCB Stake in $8.3B Deal

Bank of America Corp. (NYSE: BAC) entered an agreement to sell 13.1 billion common shares of China Construction Bank Corporation (CCB) in a private transaction with a group of investors. The sale is expected to generate approximately $8.3 billion in cash proceeds and an after-tax gain on sale of approximately $3.3 billion.

Closing is expected in Q311.

Following closing, Bank of America will hold approximately 5 percent of CCB.

The transaction was solely managed by Bank of America Merrill Lynch.

The current proposed Basel III standards place restrictions on capital that represents ownership in financial institutions above 10 percent. The sale of CCB shares announced today would put Bank of America’s ownership in CCB below 10 percent and would remove the significant investment in financial institutions deduction from the company’s Tier 1 common capital under Basel III associated with this CCB stake.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• SEC accuses ex-BofA senior banker Satsky of insider trading - Bloomberg
• BofA Securities Starts Mobility Global (MBGL) at Neutral
• Sempra sells Mexican gas distributor Ecogas for ~$500M