Bank of America concludes business negotiations
The bank has agreed to sell shares in the China Construction Bank.
Bank of America has announced the sale of 13.1 billion common shares in China Construction Bank after business negotiations were completed with a group of investors.
The deal is expected to net the company some $8.3 billion (£5 billion) in cash proceeds, as it continues its policy of reducing assets in favour of capital.
Provided that the closing conditions are met, the deal is expected to be completed by the third quarter of 2011.
Chief executive officer Brian Moynihan at the Bank of America - which operates across the US and Canada - noted the move comes after his group had a "mutually beneficial" agreement with China Construction Bank.
"This sale of approximately half of our shares of CCB stock is expected to generate about $3.5 billion in additional Tier 1 common capital," said chief financial officer Bruce Thompson.
He added the firm expects to generate $5.8 billion in additional finance.
Posted by Ron Maverick