The largest bank in the US by assets is looking to improve its capital ratios and sort out its balance sheet - starting with the sale of the Merrill Lynch holdings.
BofA is in exclusive talks with the investment and advisory firm - which has been in operation for less than 25 years - with the deal likely to include in the region of $800 million to Â£1 billion in unwanted property investments in the US, South America and Europe.
According to people familiar with the matter, however, the agreement may not go through for a number of weeks and might not even result in a sale.
A mixture of real estate debt and equity positions from a number of countries - including shopping centres in Germany, a housing developer in Brazil and underperforming loans in Italy - all form the portfolio.
By Claire Archer