Bank of America to sell most of remaining CCB stake

Mon Nov 14, 2011 3:12pm EST

A man uses his mobile phone as he walks past a logo of China Construction Bank in front of its headquarters in Beijing May 20, 2010. REUTERS/Jason Lee

A man uses his mobile phone as he walks past a logo of China Construction Bank in front of its headquarters in Beijing May 20, 2010.

Credit: Reuters/Jason Lee

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(Reuters) - Bank of America Corp (BAC.N) said it agreed to sell most of its remaining stake in China Construction Bank Corp (0939.HK) for $6.6 billion in cash, in a deal that will boost the ailing U.S. bank's capital levels.

The private sales to a group of investors are expected to generate a gain of about $1.8 billion after taxes, Bank of America said in a statement. The income will allow the bank to realize deferred tax assets, boosting a measure of capital known as tier 1 common capital by about $2.9 billion.

CCB and Bank of America still have an agreement to cooperate on areas including investment banking through 2016.

The deal follows Bank of America's agreement in August to sell $8.3 billion shares in CCB to a group of investors, equal to about half its stake at the time.

Bank of America will hold about 1 percent of CCB's common shares after its most recent deal closes in November 2011.

(Reporting by Brenton Cordeiro in Bangalore; Editing by Supriya Kurane)

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Comments (2)
Harry079 wrote:
Layoff 30,000 workers.

Close 600 branches.

Sell most of your remaining stake in the China Construction Bank for $6.6 billion after selling $8.3 billion in August.

And they still want to call themselves BANK OF AMERICA.

Nov 14, 2011 10:05am EST  --  Report as abuse
cslockbo wrote:
Corey J Slockbower: Very true. BOFA has a big stake in China, Period!

Nov 14, 2011 10:54pm EST  --  Report as abuse
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