Royal Bank mulling sale of Bank of China stake: paper

LONDON (Reuters) - Royal Bank of Scotland (RBS.L) is mulling a sale of its 4.3 percent stake in Bank of China (3988.HK) as part of a widespread review of its international assets, The Financial Times said on Thursday.

The report said that RBS, now 57 percent owned by the British Government following its bailout last year, had told Bank of China representatives this week about a possible divestment of the 2 billion pound ($2.98 billion) asset acquired in 2005.

An RBS spokeswoman declined to comment.

New Chief Executive Stephen Hester, who replaced the acquisition-hungry Fred Goodwin following the bailout, has said there will be "no sacred cows" as he seeks to overhaul the company, which also owns Citizens in the United States.

Struggling Swiss bank UBS AG (UBSN.VX) said on New Year's Eve it had sold its stake in Bank of China at a discount to institutional investors, while Bank of America on Wednesday sold a 2.5 percent stake in China Construction Bank (601939.SS) for just over $2.8 billion.

UBS bought its 1.6 percent stake in Bank of China for $500 million in 2005, while RBS paid 800 million pounds for its 4.3 percent investment in December that year.

(Reporting by John Bowker; Editing by Phil Berlowitz)