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BofA Sells Half of China Bank Stake, Raising $8 Billion

Monday, 29 Aug 2011 | 10:23 AM ET

Following whirlwind negotiations through the close of Asian markets Monday, Bank of America has sold about half its 10 percent stake in China Construction Bank to a handful of sovereign-wealth funds and institutions in the U.S. and Asia, $8.3 billion before taxes.

China Construction Bank
STR | AFP | Getty Images
China Construction Bank

The deal, which CNBC first reported on Friday, was announced by Bank of America shortly after markets opened in New York.

Shares were up about 3.5 percent in the immediate aftermath of the news.

Bank of America’s CCB sale is the latest in a series of transactions that have added to the bank’s capital reserves.

Just last week, billionaire Warren Buffett invested $5 billion in Bank of America, which has struggled of late with investor criticisms and a sinking stock price, and earlier this month, the bank announced plans to sell its Canadian credit-card business.

Fire Sale at Bank of America
The great garage sale continues at BAC, as the big bank is now selling half its stake in CCB. CNBC's Kate Kelly has the latest details.

The U.S. bank purchased its stake in CCB in 2005, around the time of the Chinese bank’s initial public offering, for roughly $3 billion.

Follow Kate on Twitter: @katekellycnbc

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