Bank of America (BoA) plans to sell 13% of its stake in China Construction Bank (CCB), worth up to US$2.8 billion, Bloomberg reported. BoA will sell 5.62 billion Hong Kong-listed shares in the Chinese lender for HK$3.92 (US$0.50), a 12% discount to CCB’s closing share price on Tuesday. CCB’s shares fell 36% last year in Hong Kong, but BoA still has nearly US$14 billion in paper profits on its investment. An earlier share sale attempt was reportedly halted due to concerns about a law banning large shareholders from selling shares within six months of purchase. BoA invested US$3 billion in CCB in 2005, and paid US$7 billion in November to increase its stake in the bank to 19.1%.
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