November 14, 2011 / 1:38 PM / in 6 years

Bank of America to sell most of remaining CCB stake

(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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