BREAKING NEWS FROM CNBC'S KATE KELLY: BANK OF AMERICA CLOSE TO SELLING PART OF CHINA CONSTRUCTION STAKE

WHEN: FRIDAY, AUGUST 26, 2011

WHERE: CNBC'S "THE STRATEGY SESSION" AT 12PM ET

Following is the unofficial transcript of breaking news from CNBC's Kate Kelly on "The Strategy Session."

For more information, visit: http://www.cnbc.com/id/44287729

All references muct be sourced to CNBC.

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DAVID FABER: ANOTHER STOCK WE HAVE BEEN WATCHING VERY CLOSELY OF COURSE BANK OF AMERICA THOSE SHARES LETS CALL IT TREADING WATER TODAY AFTER YESTERDAYS BIG UP MOVE ON NEWS OF WARREN BUFFETTS 5 BILLION DOLLAR INVESTMENT WELL THAT 5 BILLION IS NEW CAPITAL FOR THE BANK AND WHEN IT COMES TO RAISING NEW CAPITAL BANK OF AMERICA IS NOT FINISHED THERE KATE KELY IS HERE WITH SOME BREAKING NEWS ON ADDITIONAL CAPITAL RAISING PLANS FROM THE BIG BANK KATE

KATE KELLY: THANK YOU SO MUCH DAVID. YES A DAY AFTER THIS MAJOR NEWS ABOUT BUFFETT WHICH HE SUPPOSEDLY DREAMED UP IN THE BATHTUB ANOTHER MAJOR DEAL APPEARS TO BE UNDERWAY ON THE BOFA SIDE THE SALE OF AT LEAST HALF OF ITS 10% STAKE IN CHINA CONSTRUCTION BANK IM TOLD BOFA IS IN FINAL STAGES OF NEGOTIATIONS TO SELL AN 8.5 TO 9 BILLION DOLLAR CHUNK OF ITS EQUITY IN CCB TO A GROUP OF ABOUT A DOZEN SOVEREIGN WEALTH FUNDS AND INSTITUTIONS IN THE US , ASIA AND THE MIDDLE EAST A DEAL THAT COULD CLOSE AS EARLY AS MONDAY AFTERNOON IN HONG KONG WHEN THE LOCKUP ON THE CURRENT CCB INVESTMENT EXPIRES THE EYES REMIAN TO BE DOTTED OF COURSE AND THE DEAL COULD ALWAYS FALL APART ONE WILD CARD HAS BEEN CCB'S SHARE PRICE WHICH HAS SAGGED SOME 24% YEAR TO DATE AND HAS DEPRESSING THE VALUATION OF THE BOFA STAKE BUT THE BANK IS MOTIVATED TO SELL THE STOCK IM TOLD BY BASEL III CAPITAL REQUIREMENTS WHICH MAKES STRATEGIC INVESTMENTS LIKE THIS SOMETHING OF A HINDERANCE AND THE BANK THE US BANK THAT IS WANTS TO ACT AS SOON AS POSSIBLE BEFORE OTHER POSSIBLE HEADWINDS LIKE A FURTHER STOCK DECLINE AT CCB OR ADDITIONAL WEAKENING IN THE US ECONOMY RISK MAKING THINGS MORE DIFFICULT DESPITE SOME CALLS FOR IT TO RAISE ADDITIONAL CAPITRAL BOFA HAS SO FAR DECLINED TO COMMENT ON ITS PLANS FOR CCB AND DID SO THIS MORNING WITH ME BUT THE SAME CANT BE SAID FOR CHINESE OFFICIALS EARLIER THIS WEEK CCB'S PRESIDENT TOLD REPORTERS IN BEIJING THAT BOFA HAD COMMITTED TO KEEP AT LEAST HALF ITS STAKE IN THE CHINESE BANK OVER THE LONGER TERM AN ASSERTION DAVID THAT SOME BOFA SHARES AT LEAST THAT DAY AND THAT I UNDERSTAND MAY NOT BE THE CASE.

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