Bank of America Sells China Construction Bank Stake for $6.6B

NEW YORK (TheStreet) --Bank of America agreed to sell about 10.4 billion shares in China Construction Bank for about $6.6 billion in cash, in another step towards improving its capital position. The sale will be made through a private transaction to a group of investors and will result in an after-tax gain of $1.8 billion. Bank of America will own 1% in the Chinese bank following the transaction, which is expected to close in November. "Our decision to sell the bulk of our remaining shares in China Construction Bank is consistent with our stated objective of continuing to build a strong balance sheet," Chief Financial Officer Bruce Thompson said in a statement Monday. "We expect this action, supplemented by the related realization of deferred tax assets, will generate approximately $2.9 billion in additional Tier 1 common capital and further strengthen our Tier 1 common capital ratio by approximately 24 basis points under Basel I." ... Click to view a price quote on BAC. Click to research the Banking industry.

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