BofA to sell CCB stake

30 August 2011

Bank of America (BofA) has revealed it has come to an arrangement to sell half of its stake in China Construction Bank (CCB).

The lender struck a deal with a group of investors - whom the institute would not name - for $8.3 billion, the Financial Times reports.

Such a move is the latest effort by BofA to increase its additional capital as it looks to get back on its feet following the global economic downturn.

Individuals familiar with the talks said the North Carolina-based bank, which has a history spanning more than 200 years, had made numerous approaches in order to offload the holdings.

The institute targeted sovereign wealth funds and other investors in Asia and the Middle East, the source added.

Earlier in the month, an internal memo at BofA - the biggest US bank by assets - revealed the lender is looking to downsize its workforce by around 3,500 as it aims to reduce its outgoings.

By Claire Archer

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