Connect to share and comment

Bank of America sells stake in China Construction Bank

Bank of America is selling half its shares in China Construction Bank, the second-biggest bank in China, and retaining a 5 percent stake.

Breaking News GraphicEnlarge
(Antler)

Bank of America is selling half its stake in China Construction Bank, the world's second-biggest lender by market value.

Bank of America's sale of more than 13 billion shares to a group of investors, in a private transaction, nets about $3.3 billion for the U.S. bank, The Street reports.

More from GlobalPost: Bank of America to cut 3,500 jobs

The sale of CCB shares for a total price of $8.3 billion is the latest in a string of assets the North Carolina-based bank has been selling off in an effort to comply with international capital standards, The Street says.

More from GlobalPost: Bank of America stock falls 20 percent after $10 billion lawsuit

Bank of America, the biggest U.S. lender, will retain a 5 percent stake in the Chinese bank, Nasdaq says.

The partnership has been "mutually beneficial," Bank of America CEO Brian Moynihan said in a statement, Bloomberg reports.

Shares in CCB jumped after the U.S. bank said it would keep a 5 percent stake. CCB shares were heading for their biggest two-day gain in more than two years.

Chief financial officer Bruce Thompson said in a press release that the "sale of approximately half of our shares of CCB stock is expected to generate about $3.5 billion in additional Tier 1 common capital and reduce our risk-weighted assets by $7.3 billion under Basel I.".

More from GlobalPost: Warren Buffett one-day score on Bank of America deal: $357 million

http://www.globalpost.com/dispatch/news/regions/americas/united-states/110830/bank-of-america-bac-sells-stake-china-construction-bank-ccb