UPDATE 1-PNC sells $3 bln of stock at $54 a share

* Raises funds to repay government bailout

* Sells 55.6 mln shares

* Underwriters have option to buy 8.3 mln shares

NEW YORK, Feb 3 (Reuters) - PNC Financial Services Group (PNC.N) sold $3 billion of stock on Wednesday at $54 a share, just below its Tuesday closing price, raising funds to repay the bank's $7.6 billion government bailout.

PNC, among the last of the 10 largest U.S. regional banks to return the bailout funds, said it sold 55.6 million shares. The price was 65 cents below the shares' $54.65 closing price on Tuesday.

JPMorgan Chase & Co (JPM.N) and Morgan Stanley (MS.N) were the underwriters on the offering. The underwriters have a 30-day option to buy an additional 8.3 million shares, PNC said.

PNC also said on Tuesday that it was selling an investment servicing unit to Bank of New York Mellon Corp (BK.N) for $2.3 billion. The sale is also part of the bank's agreement with regulators to return the bailout funds.

PNC shares were down 17 cents, or 0.3 percent, at $54.48 in morning trading Wednesday. (Reporting by Elinor Comlay; editing by John Wallace)