In a second move in as many months Bank of America to sell most of remaining China Construction Bank stake Does BOA know something about the Chinese Economy and about housing bubbles?
(Reuters) – Bank of America Corpplans to sell most of its remaining stake inChina Construction Bank Corp <0939.HK> for $6.6 billion in cash to 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 worth of CCB shares 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 and Derek Caney) http://ow.ly/7sMLi