bank-of-america-sells-ccb-shares-in-private-deal

Bank of America sells CCB shares in private deal

Sources say the shares changed hands at a 14.3% discount to Monday's close, allowing Bank of America to raise $7.3 billion, although the US lender has yet to confirm the deal.

A group of investors led by China-based Hopu Investment Management has agreed to buy all of the 13.5 billion shares in China Construction Bank that Bank of America has been allowed to sell since a lockup expired on May 7, people close to the transaction said yesterday.

The deal, which is valued at HK$56.7 billion $7.3 billion, was privately negotiated on a principal-to-principal basis and follows hectic speculation and widespread rumours in recent weeks surrounding the fate of these same CCB shares, involving several other potential buyers and various other types of deals, including both private and public placements.

CCB's Hong Kong-listed shares, which fell 6.7% on Monday and another 2% in...

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