BofA to Sell Shares in China Construction Bank |
| Wall Street Journal - Nov 14, 2011 |
Bank Of America Corp. agreed to sell about 10.4 billion shares of China Construction Bank Corp. to a group of investors in a deal expected to generate an after-tax gain of $1.8 billion.
Bank of America has been shedding non-core assets as it aims to shore up its balance sheet ahead of new international capital standards. After the sale, Bank of America will have a stake of about 1% in the state-owned lender.
The newest sale comes about three months after Bank of America shed roughly half its stake in the giant bank, leaving it with about 5% of China Construction Bank. The sale helped the bank earn a third-quarter profit even as its mortgage unit lost $1.1 billion.
Bank of America expects the transactions, slated to close this month, will generate about $2.9 billion in additional Tier 1 common capital and strengthen its Tier 1 common capital ratio by about 0.24 percentage point.
Read Full Article from Wall Street Journal
- Posted: 2011-11-14 12:10:34
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