Bank of America nears US$10b sale in CCB stake

Bank of America (BAC.NYSE) is finalizing plans to sell half or more of its 10% stake in China Construction Bank (601939.SH, 0939.HK) in a deal that may raise nearly US$10 billion, the New York Times reported. A consortium of sovereign wealth funds in Asia and the Middle East as well as some private equity firms are in talks to purchase the stake, and could close the deal by early next week, two officials briefed on the talks said Friday. The news came just one day after Warren Buffet announced he would invest US$5 billion in the bank, which is seeking a stronger capital position under international Basel III regulations. Bank of America’s 25.6 billion shares of China Construction are now worth a total of US$19.6 billion, about US$10 billion more than the US bank paid when it bought the shares in 2005. Of the total, 23.6 billion shares are under a lock-up period which prevents any sale until Monday; the lock-up period for the remaining 2 billion shares expires next August.