bank-of-america-increases-stake-in-ccb

Bank of America increases stake in CCB

The US bank exercises an option to increase its ownership in China Construction Bank to 19.1%, potentially with a view to booking some profit on its earlier investment.

Daniel Inman

November 19, 2008

Bank of America announced late on Monday that it will exercise its option to buy further shares in China Construction Bank CCB, increasing its stake to 19.1% from the current 10.75%. The US lender expects the purchase will be completed by the end of November at an estimated cost of $6.3 billion.

Bank of America initially bought a strategic shareholding in CCB in 2005, when it spent $3 billion for 9% of the company. The acquisition was split into two parts the purchase of $2.5 billion worth of secondary shares from Chinese state investment company, China SAFE Investments Huijin, and the purchase of $500 million worth of new shares during CCB's initial...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 1 article per month from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222