Bank of America to sell Itau Unibanco stake

19 May 2010

Bank of America (BoFA) is hoping to raise around $4.4 billion by offloading its stake in Brazilian bank Itau Unibanco.

It is to sell 188.4 million preferred shares in the financial institution, with Investimentos Itau, the parent company of Itau Unibanco purchasing an additional 56.5 million.

Jerry Dubrowski, a spokesman for BoFA, told Bloomberg that the firm sees its stock in the Brazilian company as a "non-core asset".

"With the acquisition of Merrill Lynch we have a significant presence in Latin America and Brazil and this doesn't change that," he said.

As a condition of BoFA's repayment of its Trouble Asset Relief Program (TARP) debts, it agreed to produce a net gain in its half-year results of $3 billion.

It paid back its TARP bailout funding last December, using $26.2 billion in excess assets and $18.8 billion made from a securities sale to raise the necessary $45 billion.

By Tony Aynsley

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