Wednesday, May 28, 2008

BofA to increase its stake in CCB

BofA to increase its stake in CCB

By Ben White in New York

Published: May 27 2008 21:20 | Last updated: May 27 2008 21:20

Bank of America on Tuesday said it would pay about $1.86bn to increase its stake in China Construction Bank to about 10.75 per cent from its existing holding of 8.2 per cent.

The purchase of 6bn shares, slated to take place early next month, would represent part of an option BofA holds to increase its stake in CCB to as much as 19.9 per cent. BofA is paying HK$2.42 for the shares, a discount of about 64 per cent to CCB’s closing price Tuesday.

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